Full text of "The Finance Act, 1894 (57 [and] 58 Vict C. 30) so far as it relates to the new estate duty and other death duties in England; with an introduction and notes"

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THE FIMNCE ACT, 1894

so FAR AS IT -RELATES TO

THE NEW ESTATE DUTY

AND OTHER DEATH DUTIES
IN ENGLAND.

Digitized by the Internet Archive

in 2007 with funding from

IVIicrosoft Corporation

http://www.archive.org/details/financeact18945700cartuoft

^'' ' THE

FINANCE ACT, 1894

(57 & 68 Viet. e. 30)

so FAR AS IT RELATES TO

THE NEW ESTATE DUTY

AND OTHER DEATH DUTIES
IN ENGLAND.

"WITH

AN INTRODUCTION AND NOTES. «.

JAMES AUSTEN-CARTMELL, M.A.,

OF Lincoln's inn, baemster-at-law,
Author of" An Abstract of Beiporttd Cases relating to Trade-Marks, dec"

LONDON:

AVIX^DY AND SONS,
LINCOLN'S INN AECHWAY, W.C.,

1894

LONDON :
rniNTED BY C. F. EOWORTH, GREAT NEW STREET, FETTER LANE— E.G.

PREFACE.

The object of this volume is, if possible, to
afford immediate assistance to Practitioners in
interpreting what is admittedly one of the most
complicated measures that has ever been passed
with reference to Death Duties. The short time
that has elapsed since the Act was passed must
be the Author's apology for any errors that
have crept into the text.

The Author had special advantages during
the passage of the Act through Parliament of
becoming acquainted with its provisions, having
been engaged by the Incorporated Law Society
to report to them upon its general aspects, and to
examine and criticise it in detail.

Through the kindness of Sir K. E. Webster,
G.C.M.Gr., Q.C., the Author was enabled to be

VI PREFACE.

constantly present in the House throughout the
whole of the discussions in Committeej and
during the Report stage of the Measure.

The Forms, &c., to be used under the Act
have not, up to the present time, been published
by the Inland Revenue Authorities.

6, New Square, Lincoln's Inn,
August, 1894.

( vii )

CONTENTS.

INTEODUCTION.

PAGE

The Estate duty - - - - - - xiii

Of what an estate consists _ _ _ _ xiii

Definition of property passing on death - - - xiii
Exemptions from Estate duty - - - xiv — xvi

How the value of property is to be ascertained - - xvi

Allowances to be made ----- xvii

Value of agricultural property - - - - xvii

Valuations by the Commissioners - - - xviii

The principle of aggregation - - - - - xviii

Exemptions from aggregation - - - - xviii

Settled property - - - - - - xix

Foreign property - - - - - - xx

Colonial property - - - - - - xxi

Eeversionary interests sold or mortgaged before 1st

August, 1894 _____ xxi

Estate duty can be commuted on reversionary interests - xxi

Collection and recovery of Estate duty - _ - xxi

Persons accountable for Estate duty - - - xxii

Estate duty a charge on what property - - - xxii

Payment of duty on real property may be by instalments xxiii

Certificates of discharge - - - - - xxiii

Small estates - - - - - - xxiv

The rate of Estate duty - - - - - xxiv

The duties superseded ----- xxiv

To what extent - - - - - - xxv

Appeals ------- xxv

Succession duty on successions of which the successor is
competent to dispose to be calculated on the principal
value ----- XXV— xxvi

Vlli CONTENTS.

THE FINANCE ACT, 1894
(57 & 58 Vict. c. 30).

SECT. P-^GB

Preamble - - -- - - -1

1. Grant of Estate duty - . - - - - _ 2

2. What property is deemed to pass - - - 5

3. Exception for transactions for money consideration - 16

4. Aggregation of property to form one estate for purpose

of duty - - - - - - - 11

5. Settled property - - - - - 20

6. Collection and recovery of Estate duty - - - 28

7. Value of property - - - - - 34

8. Supplemental provisions as to collection, recovery, and

repayment of and exemption from Estate duty - - 45

9. Charge of Estate duty on property and facilities for

raising it - - - - - - 56

10. ApjDcal from Commissioners - - - - 59

11. Release of persons paying Estate duty - - - 62

12. Commutation of duty on interest in expectancy - - 65

13. Powers to accept composition for Death duties - - 6Q

14. Apportionment of duty - - - _ _ 67

15. Exemptions from Estate duty - - - - 69

16. Provision for estates not exceeding 1,000?. - - - 71

17. Scale of rates of Estate duty - - - - 74

18. Value of real successions for Succession duty - - 75

19. Adaptation of law as to Probate duty grant - - 77

20. Exception as to property in British Possessions - - 77

21. Savings - - - - - - 79

22. Definitions - - - - - __82

23. Application of part of Act to Scotland - - - 87

24. Commencement of part of Act - - _ _ 91
42. Short Title - - - - - .91

SCUEDULES - - - - _ » 91

APPENDIX.

Extract from Sir "William Harcourt's Budget Speech

on 16th April, 1894 - - - - - 95

INDEX - - - - - . .107

( i^ )'

LIST OF CASES CITED.

PAGE

Att.-Gen. v. Chapman 12

V. Gell 7

V. Gosling 12,13

■?;. Hey wood * , 12

V. Hubbuck , 15

V. Lord Sefton 40

V. Sibthorp 36

Austin V. Mead 9

Barnes v. London Assurance Co , 61

Blake v. AttersoU . , , 17

Blount V. Burrow 9

Bradley v. Bayliss 61

Bridge v. Brown 35

Byng, Re 83

Cigala, Re 15

Clement v. Cheeseman 9

Coulson, Re 45

Crossman v. The Queen ,......, , 13

Dashwood v. Magniac 42

Drury v. Smith 9

Duffield V. Elwes 9

Duffin V. Duffin 9

Edwards v. Jones 9

Ewin, Re 15

Earquharson v. Cave , 9

Eloyer v. Bankes 17

Forbes v. Stevens , 15

Ford & HiU, Re 34

Gardner v. Parker , » 9

Gilchrist, Ex parte , 61

Hawkins v. Blewitt , 9

James v. James 17

Johnson v. Baker 35

X LIST OF CASES CITED.

PAGE

Jones V. Selby 9

Kirby v. Biffen 61

Marlborough, Duke oi, He 23

MiUer v. MiUer 9

Moore v. Cochrane 10

Moore v. Damton , 9

Mundy, He 83

Mustapha v. "Wedlake 9

Ring V. Jarman 7

Snellgrove v. Baily 9

Staniland v. Willott 9

Tate V. HHbert 9

Tetley V. Tetley 17

Thompson v. The Advocate-Gen 15

Trimmer v. Danby 9

Veal V. Veal 9

"Walter v. Hodge 9

Ward V. Tiimer 9

Witt V. Amis 9

( xi )

STATUTES.

PAGE

34 & 35 Hen. 8, c. 20 28

36 Geo. 3, c. 52, s. 22 44

s. 33 67

45 Geo. 3, c. 28, s. 4 71

55 Geo. 3, c. 184, 8. 37 , 51

8.38 92

Sch. pt. 3 45

66 Geo. 3, c. 56, s. 117 92, 93

5 & 6 Vict. c. 35, s. 60 41

16 & 17 Vict. c. 51 40

s. 14 76

s. 21 28, 76, 76

s. 22 41

s. 23 41

s. 24 70

8.25 28

S.26 28

s. 28 28,41

88.31,32 28

8.34 41,76,84

8. 37 41

8. 39 67

8. 41 65

8. 44 45, 50

8. 60 60

20&21 Vict. c. 77, s. 46... 73

26 & 27 Vict. c. 67 46

28 & 29 Vict. c. 104 45

28 & 29 Vict. c. 111,8. 6 46

31 & 32 Vict. c. 90 46

31 & 32 Vict. c. 124, s. 9 52

33 & 34 Vict. c. 35 32

33 & 34 Vict. c. 93 11

38 & 39 Vict. c. 60, 8. 15 (4) 45

XU STATUTES.

PAGE

43 Vict. c. 14, s. 10 92, 93

s. 11 67

44 & 45 Vict. c. 12 4, 29

8.21 74

s. 28 34, 35, 37

s. 29 92, 94

s. 30 54, 55

s. 33 72

s. 34 92, 94

s. 35 73

a. 36 73

s. 38 5, 8, 11, 91

s. 40 51

s. 41 15

s. 43 67

45 & 46 Vict. c. 38, s. 2 (1) 83

ss. 7 (2), 11, 16, 18 59

ss. 31— 33 59

s. 35 59

s. 37 59

s. 58 28

45 & 46 Vict. c. 39, s. 3 56

50 & 51 Vict. c. 40, s. 3 (2) 46

51 Vict. c. 8, s. 21 5, 23, 92

8. 22 (2) 76

52 & 53 Vict. c. 7, 8. 5 5, 82, 92

s. 6 5, 23, 76, 82, 92

s. 11 5, 8, 11

8. 12 46

8. 13 47

8. 14 48

52 & 53 Vict. c. 36, s. 3 59

INTRODUCTION,

The Estate Duty imposed by this Act is in substitution
for, and in extension of, the Probate Duty, and Account
Duty (under the Customs and Inland Revenue Act,
1881) as at present existing, and is charged at a
graduated rate upon all estates exceeding 100/.

The estate in respect of which Estate Duty is levi- The estate,
able, consists not merely of the free personal estate
left, or which for the purpose of Account Duty was
deemed to be left, by the deceased, but includes the
deceased's real estate, and also property, or interests in
property, which by force of the provisions of the Act
are to be considered as passing on his death. The rate
of the duty charged is made to depend upon the
principal value of the aggregated estate.

Property passing on the death of the deceased (see Property
sect. 2, p. 5, infra) consists, speaking generally, death.^°^
of;—

(1.) The deceased's free real and personal estate,

including property which, by the exercise of

a power, the deceased was in his lifetime able

to make his own.
(2.) Property settled upon either the deceased or some

other person during the deceased's life.

XIV INTRODUCTION.

(3.) Property wliieli would, if personal property, have
been subject to Account Duty under the Cus-
toms and Inland Eevenue Act, 1881, sect. 38,
and the Customs and Inland Eevenue Act,
1889, sect. 11 ; and, for the purpose of this
Act, the words " voluntary," and " volun-
tarily," and a reference to a " volunteer,"
are to be considered as omitted from those
sections. Under this heading will fall pro-
perty which is not included under the last
heading, e. g.^ property settled by the deceased
within a year of his death, by way of gift, upon
a son.
(4.) Annuities and other interests purchased or pro-
vided by the deceased in his lifetime, and
arising or surviving on his death.
Property in which the deceased was interested merely
as the holder of an office, or the recipient of the benefits
of a charity, or as a corporation sole (see notes to
sect. 2 (1) (b), p. 6, infra), and property held by the
deceased as trustee for another person (except in certain
cases when the settlement was effected by the deceased
himself) is not to be considered as passing on his death.
Exemptions The following property, though falling within the

from Estate

Duty. category of property passing on the death of the

deceased, is exempted from Estate Duty : —

(1.) Personal property settled by a will or disposition
made by a person dying on or before the
1st August, 1894, in respect of which Probate
or Account Duty has been paid or is payable,
unless in either case the deceased was, at the
time of his death, or had been at any time since

INTRODUCTION. XV:

the will or disposition took effect, competent to
dispose of tlie property. (See sect. 21 (1),
p. 79, infra, and sect. 22 (2) (a), p. 85,
infra.)

(2.) Settled property of every description in respect
of which Estate Duty has been paid since the
date of the settlement, unless the deceased
was, at the time of his death, or had been at
any time during the continuance of the settle-
ment, competent to dispose of the property.
(See sect. 5 (2), p. 22, infra.)

(3.) Property passing under or by virtue of transac-
tions for full money consideration. (See sect. 3,
p. 16, i^ifra.)

(4.) The property of common seamen, marines, or
soldiers who are slain or die in the service of
Her Majesty. (Sect. 8 (1), p. 45, infra.)

(5.) Sums of less than 100/. which may, under the
Friendly Societies Act, 1875, the Savings
Bank Act, 1887, and the Acts 26 & 27 Yict.
c. 57, 28 & 29 Yict. c. Ill, and 31 & 32 Yict.
c. 90, be paid to the representatives of the
deceased without requiring representation.
(See sect. 8 (1), p. 45, infra.)

(6.) Eeversionary interests, the Estate Duty upon
which has been commuted under sect. 12.
(See p. 65, infra).

(7.) Survivorship annuities of less than 25/. (See
sect. 15 (1), p. 69, infra.)

(8.) Pictures, prints, books, manuscripts, works of
art, and scientific collections given or be-

XVI INTEODUCTION.

queathed for national scientific purposes, or
to any university, or to any county council,
or any municipal corporation, the duty in
respect of which has been remitted by the
Treasury. (See sect. 15 (2), p. 69, infra.)

(9.) Pensions and annuities payable by the Indian
Grovernment to the widows or children of
deceased Indian officers. (See sect. 15 (3),
p. 69, infra.)

(10.) Advowsons or church patronages which would
have been free from succession duty under the
Succession Duty Act, 1853, sect. 24. (See
sect. 15 (4), p. 70, infra,)

(11.) Eeversionary interests bond fide sold or mort-
gaged before the 1st of August, 1894.

(12.) Property settled by a husband on a wife, or
vice versa, before 1st August, 1894, and re-
verting to the settlor. (See sect. 21 (5), p. 81,
infra.)

^^^^^- The value of property liable to duty is to be ascer-

tained as provided by sect. 7, p. 34, infra. In esti-
mating such value it must be borne in mind that the
duty is payable upon the principal value of the pro-
perty passing. No difficulty arises in the case of the
deceased's free realty or personalty, as obviously in that
case it is the corpus or principal of the property that
passes on his death. There is, however, a little diffi-
culty in the case of property settled upon the deceased,
or some other person during the deceased's life, which,
by virtue of this Act, is deemed to pass on his death.
In such a case the rules for estimating the principal

INTRODUCTION. Xvil

value of the property passing are as follows : — If the
deceased's or other person's interest in the property
extended to the whole income of the property, the
principal value of the property passing is the principal
value of the property. If, on the other hand, the
deceased's or other person's interest extended to less
than the whole income of the property, the principal
value of the property passing is the principal value of
an addition to the property equal to the income to which
the interest extended. (Sect. 7 (7).)

Allowance may be made for funeral expenses and for
certain debts and incumbrances. In the case of debts
and incumbrances, the provisions of former Acts are
considerably modified. (See notes to sect. 7 (1), p. 34,
infra.) An allowance is also made in certain cases for
debts due from the deceased to persons resident abroad.
(See sect. 7 (2), p. 37, infra.)

The guiding rule by which the actual value of the
property is to be estimated is that such value shall be
the price which, in the opinion of the Commissioners,
the property would fetch if sold in the open market at
the death of the deceased. (Sect. 7 (5).)

In the case of agricultural property (see the definition
contained in sect. 22 (1) (g), p. 83, infra), where no
part of the principal value is due to the expectation of
an increased income from the property, the principal
value is not to exceed twenty-five times the annual
value as assessed under Schedule A. of the Income Tax
Acts, after making such deductions as have not been
allowed in that assessment, and are allowed under the
Succession Duty Act, 1853. (See sect. 7 (5), p. 40, infra.)

F. b

XVUl INTRODUCTION.

A deduction may also be made in this case for ex-
penses of management not exceeding five per cent, on
the annual value. If the property, though strictly
speaking agricultural, has a prospective value {e.g., for
building purposes), the value is not to be estimated
upon the basis of the annual value, but will in that case
be ascertained in the same manner as other property not
being agricultural property.

The Commissioners have power to require a valuation
to be made, but the reasonable costs of such a valuation
have to be defrayed by them. (Sect. 7 (9).)

If any person is dissatisfied with the valuation put
upon the property by the Commissioners, he may appeal
to the High Court, or, if the value of the property in
dispute is less than 10,000/., to the County Court.
(See sect. 10, p. 59, infra.)
Aggregation. j^ j^^g abeady been stated that all property passing
on the death of the deceased is to be aggregated, and
that the duty is to be at a graduated rate upon the prin-
cipal value of the aggregated estate. (See sects. 4 and
17, pp. 17 and 74, infra.) In certain cases, however,
property passing on the death of the deceased is not
aggregated with other property, but devolves as an
estate by itself ; e.g.,

(a) Property in which the deceased never had an

interest. (Sect. 4.)

(b) Property which, under a disposition not made by

the deceased, passes immediately on his death
away from his immediate family. {Ibid.)

estate if, excluding property settled otherwise

iNTRODUCTioisr. xix

than by the deceased's will, it does not exceed
1,000/.

(d) Property not chargeable with Estate Duty (see
p. xiv, supra) is not brought into account for
the purpose of aggregation ; but qucere as to
reversions the duty on which has been com-
muted under sect. 12. (See p. 66, infra.)

Under sect. 5 (2), one payment of Estate Duty in Settled

T)ro"DGirtv

respect of settled property clears it of duty down to the
death of a person who, though entitled to the property
under the trusts or limitations of the settlement, is com-
petent to dispose of the property. (See notes to sect. 5
(2), p. 22, infra.) In order to counterbalance the
advantage thus given to settled property, an additional
duty of one per cent, has to be paid upon the property
on the first death on which Estate Duty is payable.
This additional duty is called Settlement Estate Duty.
It is not, however, payable if the property passes to
some person competent to dispose of the property, or if
the only life interest arising on the death of the deceased
is that of his or her wife or husband (see notes to
sect. 5 (1) (a), p. 20, infra) ; or if the property was
settled by a disposition taking effect on or before the
1st August, 1894 (sect. 21 (4) ).

Estate Duty will be paid on the death of the settlor,
even though he has divested himself of all interest in
the property, unless the settlement was made more than
twelve months before his death (sect. 2 (1) (c) and (3) ),
and the possession and enjoyment of the property honci
fide assumed by the beneficiary immediately upon the
creation of the trust and thenceforward retained to the

XX INTRODUCTION.

entire exclusion of tlie settlor, or of any benefit to Hm
by contract or otherwise. (See the notes on the section
last quoted, p. 15, infra.) The exclusion of the settlor
must be so complete, that if he retains merely a fidu-
ciary power of sale (see sect. 22 (2) (a), p. 85, infra)
duty will, apparently, be payable on his death. The
result is, that in future settlors will be well advised
not to constitute themselves trustees under settlements
made by themselves.

In the case of property settled by a husband on a
wife or a wife on a husband, by a disposition taking
effect on or before 1st August, 1894, Estate Duty is
not payable upon the property reverting to the settlor
if he or she happens to be the survivor, but the pay-
ment of the duty is in that case postponed tiU after
the settlor's death. (Sect. 21 (5).)
Foreign Property passing on the death of the deceased situate

property. r ^ r &

out of the United Kingdom, is for the first time made
liable to a duty, which is analogous to Probate Duty.
By sect. 2 (2) (see p. 14, infra), Estate Duty is leviable
in respect of such last-mentioned property, provided
that it is liable to Legacy or Succession Duty, or would
be so liable but for the relationship to the deceased of the
person to whom it passes. Only personal or moveable
property situate abroad is liable to Legacy or Succession
Duty, and then not unless the testator, or intestate, or
predecessor, as the case might be, was domiciled in the
United Kingdom, or the property is comprised in an
English settlement and vested in trustees subject to the
jurisdiction of the Courts of the United Kingdom.
The share of a deceased partner who died domiciled in

INTRODUCTION. XXI

the United Kingdom, in real estate belonging to tlie
partnership, is considered in equity to be personalty,
and is, accordingly, liable to duty.

The Commissioners are by sect. 20 (see p. 77, infra) Colonial

property.

authorized, in the case of a colony to which that section
is applied by an Order of the Queen in Council, to
allow the amount of the death duties payable in that
colony in respect of any property situate therein to be
deducted from the Estate Duty. The section can, how-
ever, only be applied to colonies in which no Death
Duty is leviable in respect of property situate in the
United Kingdom, or which have a law to the Kke effect
as sect. 20 of this Act.

Property situate in colonies to which sect. 20 has
not been applied, is in the same position as property
situate in a foreign country properly so called.

In the case of reversions which have been bona fide Eeversions.
sold or mortgaged before the 1st August, 1894, no
other duty is to be payable by the purchaser or the
mortgagee, when the reversion falls in, than would have
been payable if the Act had not passed. (Sect. 21 (3).)

In the case of reversions generally, sect. 12 (see p. ^b^
infra) enables the Commissioners to commute the Estate
Duty which will or may become payable in respect
thereof.

By sect. 8 (1), the existing law and practice relating Collection and

recovery of

to the death duties {i.e.^ the Probate, Account, Legacy, Estate Duty.
and Succession Duties) are, so far as applicable, con-
tinued for the purposes of the collection, recovery, and
repayment of Estate Duty. The exact result of this
provision cannot be precisely stated, but the reader is

Xxii INTEODUCTION.

referred to the notes on sect. 6 (2) and (3), and sect.
8 (1). The persons who are made accountable for
Estate Duty are as follows: — The executor is made
accountable for the duty in respect of all personal
property wheresoever situate, of which the deceased was
competent to dispose at his death. This property con-
sists of the deceased's free personalty, whether situate
in the United Kingdom or abroad, and also personalty
over which he had an unexercised power of appointment.
The liability of the executor is, however, confined to the
extent of the assets which come, or might but for his
default have come, into his hands as executor. (Sects. 6
(2), and 8 (3).)

No charge is created for the duty on property passing
to the executor, nor is any person besides the executor
made accountable for the duty. It will, therefore, be
safe for persons to deal with executors in the same
manner as heretofore.

Various persons are made accountable for the duty on
property for the duty on which the executor is not account-
able, viz., beneficiaries, trustees, guardians, committees,
voluntary alienees, and purchasers for value with notice.
(Sect. 8 (4) .) In the case, however, of each of these persons
(except beneficiaries), the liability for duty is limited to the
property actually received or disposed of by him, and
the provisions of the Act of 1889, as to the time within
which the liability is in certain cases made to cease, are
incorporated into the Act. Purchasers for value with-
out notice (sect. 8 (16) ), and bailiffs and agents (sect. 8
(4) ), are exempted from liability. The duty is also
made a charge on the property (sect. 9 (1) ), but this

INTRODUCTION. XXUl

charge does not affect the property in the hands of a
bond fide purchaser for value without notice {ibid.) ; nor
does it attach to any property situate in a colony but
liable to Estate Duty so long as it remains so situate
(sect. 20 (2) ). Power is given to the executor, in certain
cases, to pay the duty on other property besides that
for the duty on which he is made accountable.
(Sect. 6 (2).)

Means are provided by which persons paying the
duty can raise or recover the same from the persons
ultimately liable. (See sect. 9 (4) (5) (6) and (7) and
sect. 14.) The Commissioners themselves will recover
the duty under the provisions of 28 & 29 Yict. c. 104.
(See note on sect. 8 (1), "Eecovery," p. 45, infra.)

In the case of real property, duty may be paid by
eight equal yearly instalments or sixteen half-yearly
instalments, with interest at three per cent, per annum
from the expiration of twelve months from the death,
that being the date on which the first instalment is
due.

If in the case of any property the Commissioners are
satisfied that the duty cannot be raised at once without
excessive sacrifice, they may allow payment to be post-
poned on certain terms. (Sect. 8 (9).)

Under sect. 11 certificates of discharge may be given certificate of
by the Commissioners. Such certificates do not, how- ^' ^^^^'
ever, discharge any person except purchasers for value
without notice, if obtained by means of fraud or failure
to disclose material facts. Certificates of discharge can
only be granted as of course if the full Estate Duty has
been paid. At the expiration of two years from the

Xxiv INTEODUCTION.

death the Commissioners are empowered, under certain
circumstances, to grant such certificates in respect of
specific items of property. (See sect. 11 (2).)

Small estates. Bj sect. 16 (1) (see p. 71, infra), the scope of sects. 33,
35 and 36 of the Customs and Inland Eevenue Act, 1881,
is extended. If the gross value of the real and personal
estate of the deceased, exclusive of property settled
otherwise than by his will, exceeds 300/., but does not
exceed 500/., a fixed duty of 50s. is payable. If such
gross value does not exceed 300/., a fixed duty of 30s. is
payable. In neither case is representation required to
the personal estate ; and if the estate is less than 100/.
no Estate Duty is payable at all. If the net value of
the property, real and personal, exclusive of property
settled otherwise than by the deceased's will, does not
exceed 1,000/., then if the fixed duty or Estate Duty
has been paid, Settlement Estate Duty and Legacy and
Succession Duty are not payable under the will or in-
testacy of the deceased. (Sect. 16 (3).)

The rate of The rates of Estate Duty are given in sect. 17, and

duty.

rise from 1/. to 8/. per cent., according to the value of
the estate.
The duties If property is chargeable with Estate Duty, the fol-

Buperseded. ...

lowing duties are not payable : —
(1.) Probate Duty.
(2.) Account Duty under the Customs and Inland

Eevenue Act, 1881.
(3.) The additional Succession Duties imposed by

the Customs and Inland Eevenue Act, 1881,

sect. 21.
(4.) The temporary Estate Duties imposed by the

INTRODUCTION. XXV

Customs and Inland Eevenue Act, 1889, sects.
5 and 6.

(5) The one per cent. Legacy or Succession Duty.

This last duty is not payable in respect of settled
property which has been already charged with Estate
Duty since the date of the settlement. In such a case,
however, it would appear that the Duties numbered (3)
and (4) would be payable. (See notes to section 1,
"Existing Duties," p. 4, infra, and sect. 5 (2), p. 22,
infra.)

All the above-mentioned duties remain payable in
respect of personal property settled by a will or dispo-
sition made by a person dying on or before 1st August,
1894, in respect of which Probate or Account Duty has
been paid or is payable. (Sect. 21 (1).)

Sect. 10 (see p. 59, infra), contains full provisions for Appeals,
appeals from decisions of the Commissioners on almost
every point. As already stated, if the property in
respect of which the dispute arises does not exceed
10,000/., the appeal may be made to the County Court.
(Sect. 10 (5).)

Valuers are to be appointed by county councils and
county boroughs, to whom the Court may refer for
arbitration any question of disputed value. Appeals
cannot be brought unless the duty claimed has been
paid, or if, with the leave of the Court, security has
been given for the same. (Sect. 10 (1) and (4).)

Sect. 18 (see p. 75, infra), introduces a considerable Succession

Duty.

change into the law relating to Succession Duty upon
successions to real estate. Under the Succession Duty
Act, 1853, sect. 21, Succession Duty is payable upon

F. c

XXVI INTRODUCTION.

the interest of the successor, which is taken to be of the
value of an annuity equal to the annual value of the
property (after making certain deductions), and pay-
able from the time of his coming into possession during
the residue of his life, or for any less period during
which he shall be entitled thereto.

By sect. 18 of this Act (see p. 75, infra), Succession
Duty is, if the successor is competent to dispose of the
property, to be assessed on the principal value of the
property (after deducting the Estate Duty payable in
respect thereof), and is to be payable by the same
instalments as are authorized by sect. 6 (8) of the Act
for the payment of Estate Duty upon real property.
Succession Duty is not, however, to be paid unless the
successor comes into possession of his succession. The
principal value of the property is to be ascertained in
the same manner as it would be ascertained for the
purpose of Estate Duty.

FINANCE ACT, 1894,

[DEATH DUTIES (ENGLAND).]

57 & 58 Vict. cap. 30.

An Act to grant certain Duties of Customs and
Inland Revenue^ to alter other Duties^ and to
amend the Law relating to Customs and Inland
Revenue, and to make other provision for the^
financial arrangements of the year,

[31st July, 1894.]

Most Gracious Sovereign,

We, Your Majesty's most dutiful and loyal subjects, Preamble,
the Commons of the United Kingdom of Great Britain
and Ireland in Parliament assembled, towards raising
the necessary supplies to defray Your Majesty's public
expenses, and making an addition to the public revenue,
have freely and voluntarily resolved to give and grant
unto Your Majesty the several duties hereinafter men-
tioned; and do therefore most humbly beseech Your
Majesty that it may be enacted, and be it enacted by
the Queen's most Excellent Majesty, by and with the
advice and consent of the Lords Spiritual and Temporal,

F. B

2 DEATH DUTIES (eNGLANd).

§ 1. and Commons, in this present Parliament assembled,
~" and by the authority of the same, as follows :

PAET I.
Estate Duty.

Grant of Estate Duty.
Grant of 1. In the case of every person dying after the com-

mencement of this Part of this Act, there shall, save as
hereinafter expressly provided, be levied and paid, upon
the principal value ascertained as hereinafter provided,
of all property, real or personal, settled or not settled,
which passes on the death of such person a duty, called
" Estate duty," at the graduated rates hereinafter men-
tioned, and the existing duties mentioned in the First
Schedule to this Act shall not be levied in respect of
property chargeable with such estate duty.

Estate Duty. Estate duty is a duty charged on the death of
a person at a graduated rate upon the principal value of his
estate. The estate of a deceased person is, speaking broadly,
the aggregate of all property, real and personal, whether settled
or unsettled, in which the deceased had any interest. But other
property, e.g. property in which the deceased himself had no
interest, but an interest in which passes upon his death to some
other person, is also liable to the duty as an estate by itself.
(See sect. 4, p. 17, infra.)

In some respects the now duty is the analogue of probate
duty, e.g. it is charged on all free property, real and personal,
belonging to the deceased. In other respects it resembles suc-
cession duty, e.g. it is charged on property in which the deceased
had only a Hmited interest.

Person dying after the commencement of this part of the

Act. I'C' after the 1st August, 1894. Such a person is
throughout the Act described as " a deceased person," or " the
deceased." (Sect. 22 (1) (a), p. 82, infra.)

The commencement of this part of the Act. I.e. the expi-
ration of the 1st August, 1894. (Sect. 24, p. 91, infra.)

Save as hereinafter provided. The following classes of
property are exempted from estate duty : —

(i) Personal property settled by a will or disposition made by
a person dying on or before the 1st August, 1894, in
respect of which probate or account duty has been paid
or is i^ayable, unless in either case "the deceased" was

57 & 58 Vict. c. 30.

at the time of his deatli, or had at any time since the 8 1.

will or disposition took effect been, " competent to dis- !.

pose of the property." (Sect. 21 (1), p. 79, infra.) The
expression "competent to dispose of" is defined in
sect. 22 (2) (a), p. 85, infra. (See also sect. 2(1) (a),
p. 5, infra.)

(ii) Property passing on death by reason only of a hond fide
purchase from the person nnder whose disposition the
property passes, including property passing upon the
determination of an annuity or lease for lives, where the
same was granted for full consideration in money or
money's worth. (Sect. 3, p. 16, infra.)

(iii) Settled property of every description in respect of which
estate duty has been paid since the date of the settle-
ment, and of which the deceased was not at the time of his
death, or had been at any time during the continuance
of the settlement, " competent to dispose." (Sect. 5 (2)
p. 22, infra.)

(iv) The property of common seamen, marines, or soldiers
who are slain or die in the service of Her Majesty,
and sums under 100/., which under the existing law
may be paid to the representatives of the deceased
without requiring representation. (Sect. 8 (1), p. 45,
infra.)

(v) Eeversionary interests expectant upon the death of the
deceased, the duty on which has been commuted under
sect. 12 (p. 65, infra), or which, before the 1st August,
1894, have been sold or mortgaged for full conside-
ration in money or money's worth. (Sect. 21 (3), p. 80,
infra.)

(vi) A survivorship annuity or an annuity to arise on the
death of the deceased not exceeding 25/. (Sect. 15 (1),
p. 69, infra.)

(vii) Pictures, prints, books, manuscripts, works of art, and
scientific collections given or bequeathed for national
scientific purposes, or to any university, county council,
or municipal corporation, the estate duty on which has
been remitted by the Treasur5^ (Sect. 15 (2), p. 69,
infra.)

(viii) Pensions and annuities j)ayable by the Government of
British India to the widows or children of deceased officers
of such government. (Sect. 15 (3), p. 69, infra.)

(ix) Advowsons or church patronages which would have been
free from succession duty under the Succession Duty
Act, 1853, s. 24. (Sect. 15 (4), p. 70, infra.)

(x) Property settled on or before 1st August, 1894, by one
spouse upon the other, if the settlor succeeds to the life
interest in his or her own property. (Sect. 21 (5), p. 81,
infra.)

(xi) Property in which a person was interested as holder of an
office or recipient of the benefits of a charity, or as a
corporation sole. (Sect. 2 (1) (b), p. 6, infra.)

DEATH DUTIES (eNGLAND).

1. Levied and paid. (See sects. 6 to 9, pp. 28 to 59, infra.)

The principal value ascertained as hereinafter provided.

What is charged with duty under this Act is the corpus of the
*' property passing on the death of the deceased." Such pro-
perty is defined in sect. 2. In each case it must be determined
what exactly is the " i^roperty passing," and if the deceased was
not competent to dispose of the property, the corpus will have to
be ascertained as provided by sect. 7 (7), (p. 43, infra). Sect. 7
provides machinery for determining the pecuniary value of the
corpus to be charged. The rate of estate duty payable in respect
of any property will be graduated according to the value of the
estate of which it forms part. (Sect. 17, p. 74, infra.)

Property, real or personal. No distinction is made between
real and personal property, so long as it can be reached by the
English Courts. Thus, all property of every kind or description,
situate within the United Kingdom, is, except as above mentioned
(p. 2, supra), liable to the duty; and property situate without
the United Kingdom is also liable, if it is subject to succession
or legacy duty. (As to this, see sect. 2 (2), p. 14, infra ; sect. 20,
p. 77, infra.) " Property " (by sect. 22 (1) (f), p. 83, infra), in-
cludes ' ' real and personal property, and the proceeds of sale
thereof, and any money or investments for the time being
representing the proceeds of sale."

Settled or not settled. So long as property passes on the
death of a person, it is immaterial in what instrument it is com-
prised.

" Settled property" means "property comprised in a settle-
ment," and " a settlement" means any instrument, whether re-
lating to real property or personal property, which is a settlement
within the meaning of sect. 2 of the Settled Land Act, 1882, or
if it related to real property would be a settlement within the
meaning of tbat section, and includes a settlement effected by a
parol trust. (Sect. 22 (1) (h) and (i), p. 83, iiifra.)

Which passes on the death of such person. Only property
passing on the death of a person dying after the 1st August,
1894, is liable to estate duty. The nature of property passing
on a person's death is defined in sect. 2 (p. 5, infra). " On the
death," in addition to its literal signification, means " at a
period ascertainable only by reference to the death," and property
is said to pass if it passes either immediately or after an interval,
either certainly or contingently, and either originally or by way
of substitutive limitation. (Sect. 22 (1) (1), p. 84, infra ; and note
to sect. 2 (1) (b), "Property in which the deceased, &c." (p. 6,
infra) ).

Graduated rates hereinafter mentioned. (See sect. 17,

p. 74, infra.)

The existing duties. I.e. :

(i) Probate duty. (The Customs and Inland Eevenue Act,

1881).

57 & 68 Vict. c. 80. 5

(ii) The Account duty. (The Customs and Inland Revenue 8 1,

Act, 1881, sect. 38 ; amended by The Customs and

Inland Revenue Act, 1889, sect. 11, sub-sect. (1) ).

(iii) The additional succession duties imposed by The Customs
and Inland Revenue Act, 1888, sect. 21 (?.e., ^ per cent,
for lineals, and IJ per cent, for other persons).

(iv) The temporary estate duties imposed by The Customs and
Inland Revenue Act, 1889, sects. 5 and 6 {i.e., the addi-
tional 1 per cent, upon personal estates and successions
exceeding 10,000/.).

(v) The 1 per cent, legacy and succession duties payable by
lineal ancestors or descendants of the deceased under his
will or intestacy, or, on his death, under his disposition
or any devolution from him under which estate duty
has been paid, or under any other disposition under
which estate duty has been paid.

These duties remain payable upon property passing on the
death of a person dying on or before the 1st August, 1894 (sect.
21 (2), p. 80, infra). The temporary estate duties, imposed by
The Customs, &c., Act, 1889, sects. 5 and 6, and the additional
succession duties imposed by the Customs, &c.. Act, 1888,
sect. 21, remain, it would appear, payable in respect of : (a) pro-
perty settled by a will or disposition made by a person dying on
or before the 1st August, 1894, in respect of which probate or
account duty has been paid or is payable ; (b) settled property
upon which estate duty has already been paid upon some death
occurring since the date of the settlement. As to cases falling
under (b), see, however, sect. 5 (2), note "Nor shall any of the
duties mentioned in the fifth paragraph, &c." (p. 23, infra).

2. — (1.) Property passing on tlie death of the de- what property
ceased shall be deemed to inckide the property follow- pass.^°^^
ing, that is to say : —

(a) Property of which the deceased was at the time of
his death competent to dispose.

Shall be deemed to include. The definition is not in terms
inclusive, but it is framed so as practically to include every
form of property or interest in property passing on death.

Property. (See sect. 22 (1) (f), p. 83, infra).

Competent to dispose. (See sect. 22 (2), (a) and (c). )
Property of which a person is competent to dispose consists of — •
(i) His free realty and personalty, (ii) Real property of which
he is tenant in tail in possession or remainder, (iii) Property
over which he has a general power of appointment, whether exer-
ciseable by deed or will, or both, provided such power is not of a
fiduciary character, i.e., vested in him as trustee (under a dis-

DEATH DUTIES (eNGLANd).

§ 2. position not made by himself) or mortgagee, or as tenant for life

under the Settled Land Acts, (ivj Money which he has a general

power to charge on j^roperty. (v) Property which would fall
under the above categories if he were sui juris.

With regard to (ii), a person is to be deemed competent to
dispose of property if ho is tenant in tail in remainder. Under
sect. 5 (3) (p. 26, infra), it is enacted that if the interest of any
person under a settlement fails, by reason of his death, before it
becomes an interest in possession, and subsequent limitations
under the settlement continue to subsist, the property shall not
be deemed to pass on his death. See note on sect. 5 (3) for the
effect of that provision in the case of an estate tail in remainder
limited to B. under a settlement (with remainders over), which
fails by reason of B.'s death sine prole before his estate tail
falls into possession.

With regard to (iii), the imposition of a death duty upon
property over which the deceased had a general power of
appointment that he did not exercise, is new. Under the existing
law neither probate, legacy, or succession duty is payable in
respect of property over which the deceased had a general power
of appointment unless he exercised the power. With regard to
fiduciary powers see note to sect. 22 (2) (a), (p. 85, infra).

Under (v) estates of infants, lunatics, &c., are put on the same
footing as those of persons sui juris,

(b) Property in which the deceased or any other per-
son had an interest ceasing on the death of the
deceased to the extent to which a benefit accrues or
arises by the cesser of such interest but exclusive
of property the interest in which of the deceased or
other person was only an interest as holder of an
office or recipient of the benefits of a charity or as
a corporation sole.

Property in which the deceased, &c. This sub-section
deals with property in which the person from whom the property
passed on the death of the deceased, had only a limited interest.
This propert}^ falls under two heads : — (1) Property in which the
deceased had an interest ceasing on his death. (2) Property in
which some person, other than the deceased, had an interest
ceasing on the death of the deceased.

Under (1) fall life estates and interests under settlements, life
annuities and rent-charges charged on or issuing out of any
property, the "life," in these cases, being that of "the de-
ceased." The test is that, upon the falling-in of the life in
question, a benefit must accrue or arise to some person. No
duty is therefore chargeable in respect of an annuity payable
during the life of the deceased and ceasing on Lis deatli, if it is
merely secured by a covenant, and is not charged on or does

. 67 & 58 Vict. c. 30.

not issue out of property. (See 27 Hansard, 4tli Ser. , pp. 56 & 57.)
' ' The benefit accruing or arising' ' on the death of the deceased may, ■
by virtue of sect. 22 (1) (1), p. 84, i^/rw, accrue or arise either imme-
diately (e. (/., where property is settled on the deceased for life,
with remainder to his children), or after any interval [e. g., where
there is a trust for accumulation of income during a limited
period before the next interest arises ; Att.-Oen. v. OeU, 3 Hurlst.
& Colt. 615 ; Ring v. Jarman, L. E. 14 Eq. 357 ; or where an inte-
rest is to arise upon the happening of some event, as, for instance,
the marriage of a prior life tenant), or certainly or contingently
{e. g., where property is limited after the death of the deceased
to some person upon his attaining twenty-one years), or origi-
nallii or hy luay of substitutive limitatio-n [e. g., where property is
limited after the deceased's death to A. in fee, but should A. die
sine vrole, to B. in fee, and A. dies before the deceased sine prole).
The instances above given deal with cases in which the interest
arising on the death of the deceased is an interest in the tvhole
property. They are, however, mutatis mutandis, equally applic-
able to cases in which the interest arising on the deceased's
death is the value of an annuity or rent-charge charged upon or
issuing out of some property, and payable to the deceased during
his life.

Under (2) fall cases in which estates and interests are limited
to third persons during the life of the deceased, or annuities and
rent-charges charged upon or issuing out of property, are made
payable to third persons during the life of the deceased. In
these cases, equally with cases falling under (1), the benefit
accruing or arising may be either immediate or after an in-
terval, certain or contingent, original or by way of substitutive
limitation.

The expression " on the death " includes " at a period ascer-
tainable only by reference to the death" (sect. 22 (1) (1), p. 84,
infra). The following is a typical example of cases falling under
this heading : —

A. (a father) settles 10,000?. on B. (his eldest son) during A.'s
life, with remainder, on A.'s death, to C. (A.'s second son).
Estate duty is paid on A.'s death.

Leases for lives, of which the deceased was the last life, fall
under this heading; but as to these see sect. 3 (p. 16, infra).

To the extent to which a benefit, &c.— This is explained

by sect. 7 (7) (p. 43, infra)^ by which it is provided as fol-
lows : — If the interest, ceasing on the death of the deceased,
extended to the whole income of the property [e.g., property
worth 10,000?. limited to the deceased for life, with remainder
to B., or the same property limited to A. during the life of the
deceased, with remainder to B.), the value of the benefit accru-
ing or arising on the death of the deceased will be the principal
value of the property (*. e., in the case given above, 10,000?.).
If, however, the interest, ceasing on the deceased's death, ex-
tended to less than the whole income of the property (e. g.y
property worth 10,000?., charged with an annuity of 200?. per
annum in favour of the deceased during his life, or of A. during
the life of the deceased), the value of the benefit accruing or

^ DEATH DUTIES (eNGLANd).

§ 2. arising will be the principal value of an addition to tlie pro-

' perty equal to the income to which the interest extended (i. e.,

in the case just given the capitalized value of 200/. per annum,
or, at 3 per cent., 6,666?. 13s. 4c?.).

But exclusive of property the interest, &c. The effect

of these words is to exclude from the class of property passing
on death (which is the only property liable to estate duty)
the stipend or emoluments attached to any office of profit,
whether ecclesiastical {e.g., that of a dean or prebend), or lay
{e.g., that of a judge, or master, or fellow, of a college at a
university), pensions and annuities granted by a charity, and
the emoluments enjoyed by a corporation sole [e. g., a bishop or
a parson).

44 & 45 Vict. (c) Property whicli would be required on the death of

62 & 53 Vict. the deceased to be included in an account under

section thirty-eight of the Customs and Inland
Revenue Act, 1881, as amended by section eleven
of the Customs and Inland Eevenue Act, 1889, if
those sections were herein enacted and extended to
real property as well as personal property, and the
words " voluntary " and " voluntarily " and a re-
ference to a " volunteer " were omitted therefrom :
and

Property which would, &C. The Customs and Inland
Revenue Act, 1881, sect. 38, as amended by the Customs and
Inland Revenue Act, 1889, sect. 11, and varied by this Act, runs
as follows : —

(i) " Any property taken as a donatio mortis causa, made by
any person dying after 1st August, 1894, or taken under
a disposition made by any person so dying purporting to
act as an immediate gift irder vivos, whether by way of
transfer, delivery, declaration of trust, or otherwise,
which shall not have been made bond fide twelve months
before the death of the deceased, and property taken
under any gift, whenever made, of which property hond
fide possession and enjoyment shall not have been
assumed by the donee immediately upon the gift, and
thenceforward retained to the entire exclusion of
the donor, or of any benefit to him by contract or
otherwise :
(ii) "Any property which a person so dying, having been
absolutely entitled thereto, has caused or may cause to
be transferred to or vested in himself and any other
person, or has purchased or invested by himself alone,
or in concert or by arrangement with any other person,
so that the beneficial interest therein passes or accrues
by survivorship on his death to such person :

. 57 & 58 Vict. c. 30. ^ l9

(iii) "Any property, and tlie proceeds of sale of any property, . 8 2.

passing under any past or future settlement made by- — — ■—

any person so dying, by deed or any other instrument
not taking effect as a will, and any trust, whether ex-
pressed in writing or otherwise, and if contained in a
deed or other instrument effecting the settlement,
whether such deed or other instrument was made for
valuable consideration or not as between the settlor and
any other person, whereby an interest in such property
for life, or any other period determinable by reference
to death, is reserved either expressly or by implication
to the settlor, or whereby the settlor may have reserved
to himself the right by the exercise of any power to
restore to himself or to reclaim the absolute interest in
such property."

Donatio mortis causa. A donatio mortis causa is a gift of
personal property made in contemplation [Duffidd v. Elwes,

1 Bligh, N. S. 497 ; Edivards v. Jones, 1 My. & Cr. 226 ; Walter
V. Hodge, 2 Swanst. 92) of death, and intended (either ex-
pressly, Staniland v. Willott, 3 Mac. & G. 664, or impliedly,
Gardner v. Parker, 3 Madd. 184), to take complete effect only if
the donor dies [Edwards v. Jones, supra ; Tate v. Hilhert, 2 Ves.
jun. Ill) from the illness affecting him at the time of the gift.
The subject of the gift must be delivered either actually [Ward
V. Turner, 2 Yes. sen. 431; White & Tudor, 1 L. C, 6th ed.,
1058), or (if the nature of the thing given does not admit of
corporeal delivery) constructively [Jones v. Selby, Prec. Chanc.
300; Moore v. Darnton, 4 De G. & Sm. 517; MustaphaY. Wed-
lake, 8 Times L. E. 160) to the donee, or to some person for
him (see White & Turlor, 1 L. C, 6th ed., p. 1074) for the use of
the donee [TateY. Hilhert, 2 Ves. jun. 120), or upon trust for
another [Drury v. Smith, 1 P. Wms. 403; Farquharson y . Cave,

2 Coll. 356), or for a particular purpose [Blount v. Burroiv, 4
Bro. C. C. 71). The donor must part with the dominion as well
as the possession of the thing [Haiuldns v. Blewitt, 2 Esp. 663) ;
and a mere delivery to a person as agent for the donor will not
suffice [Farquharson v. Gave, 2 Coll. 356, 367; Trimmer v.
Danhy, 25 L. J. Ch. 424).

Personal property which can be made the subject of a donatio
mortis causa, includes chattels passing by delivery, and also bank
notes [Miller v. Miller, 3 P. Wms. 356), bankers' deposit notes
[Duffin V. Huffin, 44 Ch. D. 76), bonds [Snellgrove v. Baily, 3
Atk. 213), bills of exchange, notes and cheques of a third person
[Veal V. Veal, 27 Beav. 303; Austin v. Mead, 15 Ch. D. 651;
Glement Y. Gheeseman, 27 Ch. D. 631), but not of the donor
[GlementY. Gheeseman, supra), mortgage debts [DuffieldY, Elwes,
1 Bligh, N. S. 497), policies of insurance [Witt v. Amis, 1 Best
& Sm. 109), and promissory notes ( Veal v. Veal; Austin v. Mead,
supra).

Under a disposition made by any person so dying,
purporting to act as an immediate gift inter vivos
whether by way of transfer, delivery, declaration of

10 DEATH DUTIES (eNGLANd).

§ 2. trust or otherwise, which shall not have been made
■ bona fide twelve months before the death of the de-
ceased. The effect of these words is to bring within this
sub-clause gifts of every nature, howsoever effected, if made
within twelve months before the death, e.g., a transfer of 1,000Z.
Consols to a charity ; a conveyance of an estate for ' ' natural
love and affection" ; a gift of a valuable picture ; a declaration
of trust whereby the donor declares that he holds property
belonging to himself in trust for some other person ; an assign-
ment of a policy of insurance upon the life of the owner to a son
or daughter. " Gifts inter vivos " can be effected: (1) In the case
of personal property passing by delivery, without any written
instrument, so long as the gift is assented to by the donee, and
there is an actual or constructive delivery of the subject of the
gift. [Moore v. (Jochrane, 25 Q,. B. D. 57.) (2) In the case of all
property, whether real or personal, by a deed of gift, declaration
of trust, or some written instrument taking effect as such, and,
if personal propert}', either with or without delivery. Gifts made
in this manner aire valid as between donor and donee, but may,
if of personal property, be in certain cases, if the instrument of
gift is not registered under the Bills of Sale Acts, avoided by
the trustee in bankruptcy or execution creditor of the donor.
The word "voluntary" occurred in the Customs and Inland
Eevenue Act, 1881, sect. 38, before the word " disposition," and
an ante -nuptial settlement made by a father upon a son or
daughter, not being a voluntary settlement, did not therefore
fall within that section. It will, however, it is thought, be
held that the effect of the omission of the word " voluntary " in
this context is to bring within the scope of this sub -clause a
settlement of the character above alluded to, if made within
twelve months of the death of the settlor.

A voluntary release of a life interest by a life tenant under a
settlement to the remainderman, or of a general power of
appointment or revocation by the donee thereof, would, if made
within a year of the life tenant's or donee's death, fall, it is
thought, within this sub-clause. (As to this, see notes " In-
terest for life," and "The right ... to restore to himself or
reclaim the absolute interest in such property, pp. 12 & 13, infra.)

Property taken under any gift whenever made, of which
property bona fide possession and enjoyment, &c. The

transactions aimed at are gifts made at any time (not necessarily
twelve months before the death of the donor) where the donor
retains an interest in or a power over the subject of the gift.
Any retention by the donor for however short a time of an
interest in or a power over the property would apparently bring
the transaction within this sub-clause.
Examples : —

(i) A. hands over 2,000/. to his brother in consideration of
his brother allowing him an annuity of 50/. for the
rest of his life,
(ii) A. hands over his estate of Whiteacre to B. on the

57 & 58 Vict. c. 80. 11

condition that B. shall pay A.'s debts within one year, § g,

or in default of B. so doing, that the property shall be

reconveyed to A.

Any property which a person . . . has caused ... to be
transferred to or vested in himself and any other person.

These words deal with cases in which an absolute owner,
whether of real or personal property, transfers the same into the
joint names of himself and some other person or persons, so that
they become joint tenants of the beneficial interest in the pro-
perty.

In the case of a purchase or investment by a husband in the
joint names of himself and his wife, or by a father in the joint
names of himself and his child, the law presumes an intention
on the part of the husband or father to make a provision for the
wife or child. In the case of joint mortgages, the mortgagees are
in equity deemed to be tenants in common (in whatever propor-
tions the money was advanced), and the survivor (in whom the
security is vested at law by survivorship) is a trustee for the legal
personal representatives of the deceased mortgagee. So also in
the case of partnership property, there is at law a joint tenancy,
and in equity a tenancy in common. The omission of the word
" voluntarily," which occurred before the words " caused " and
" cause," do not, it is thought, make much practical difference.
If the joint purchase or investment was made for full con-
sideration in money or money's worth, moving from the person
to whom the benefit will accrue, to the person effecting the pur-
chase or investment, estate duty will not be payable. (Sect.
3 (1), p. 16, infra.) If it was made for partial consideration,
the value of the consideration will be allowed as a deduction
from the value of the property (sect. 3 (2), p. 16, infra).

Or has purchased or invested by himself alone. By these

words the Act is, it is thought, made applicable to a policy
effected by a husband on his own life to be payable to the wife
if she survives, " nomination" policies, policies effected under
the Married Women's Property Act, 1870, and survivorship
policies. In any case these transactions fall, it would seem,
under sub-clause (d). (See p. 13, infra.)

The combined effect of sub-clause (d) and sect. 3 (p. 16,
infra), is to supersede the following provision contained m the
Customs and Inland Revenue Act, 1889, sect. 11 (1). "The
charge (r.e., for account duty) under the said section [i.e., sect.
38 of the Customs and Inland Revenue Act, 1881) shall extend
to money received under a policy of assurance effected, by any
person djdng on or after 1st June, 1889, on his life, where the
policy is wholly kept up by him for the benefit of a donee,
whether nominee or assignee, or a part of such money in propor-
tion to the premiums paid by him, where the policy is partially
kept up by him for such benefit."

Example. — Twenty shares in a limited company are purchased
in the joint names of the deceased and A., each having found
one-half of the purchase-money. The property passing on the

12 • DEATH DUTIES (eNGLAND).

§ 2. deceased's death is the moiety accruing to A. by survivorship.

■ As to the application of sect. 3, see Jast note.

Any property and the proceeds of sale, &c. This sub-
clause brings within the operation of the Act all property real
and personal, and the proceeds of sale thereof, settled by any
instrument other than a will, or by a parol trust whereby a life
interest or power of revocation is given to the settlor.

Passing under. " Property, the right to direct the applica-
tion of which is created by deed A, but the si)ecific direction of
which is effected by deed B, passes under (not hij) deed A." (Per
Wills, J., The Attorney-General Y. Chapman, (1891) 2 Q. B. 526,
532; cp. The Attorney -Ge7u:ral Y. Gosling, (1892) 1 Q. B. 545.)

It is conceived that the property, in order to be property
passing on the death of the settlor, must actually pass under the
settlement, and that this sub-clause would not apply if the
settlor has, by the exercise of some power in his lifetime, taken
the property out of the settlement or executed a release (more
than a year before his death if the release is voluntary) of his
life interest in the property.

Settlement. The omission of the word "voluntary," which
occurs in the Act of 1881 before the word " settlement," makes
this sub- clause applicable to marriage settlements, if the settlor
has reserved a life interest in or a power of revocation over the
property.

If the settlement was for consideration in money or money's
worth the provisions of sect. 3 (p. 16, infra) apply.

Was made for valuable consideration or not as between
the settlor and any other person. Having regard to the
omission of the word "voluntary" throughout the sub-clause,
and the provisions of sect. 3 (p. 16, infra), it is doubtful
whether these words are strictly necessary for the purpose of
this Act.

Interest for life. It is not apparently necessary that the settlor
should reserve to himself an interest in the whole of the settled
property, if the whole of the property passes on his death. See
The Attorney -General v. Heyivood, 19 Q. B. D. 326, in which case
there was discretionary trust of the income of the property
during the settlor's life in favour of himself and his wife and
children.

A release by the settlor of his life interest to or in favour
of the persons entitled in remainder or reversion would, it is
thought, operate so as to take the property out of the scope of this
section. (See note " Passing under," supra.) It might, however,
be said that a release is only an assignment of a prior interest to
the persons interested in remainder, and that such an assignment
should not have any greater effect than an assignment to persons
other than persons interested in remainder, which would certainly
not operate so as to defeat the operation of the section.

If the release is voluntary, it must, even if good otherwise,
have been made more than a year before the death of the re-

. 57 & 58 Vict. c. 30. 13

leasor. (See p. 10, supra.) If the release was for value "in § 2,

money or money's worth, it would fall within sect. 3 (p. 16,

infra.)

Is reserved. These words do not mean more than that a life
interest is kept or provided for or secured to the person making
the settlement. (Per Wills, J., in The Attorney -General v.
Gosling, (1892) 1 Q. B. 545, 549 ; cp., Grossman v. The Queen, 18
Q. B. D. 256.)

The right ... to restore to himself or to reclaim the
absolute interest in such property. In this case no interest
need be reserved to the settlor. It is sufficient that a power of
revocation or a general power of appointment should be reserved
to the settlor. It is a matter of some doubt whether the release of
a power of revocation or of a general power of appointment (even
if made more than a year before the death of the settlor) would
take the property out of the operation of this sub-clause. Upon
the whole, it is submitted, that such a release would have that
effect. If A. has settled 1,000/. consols upon trust for B. for
life, with remainder to C. absolutely, reserving to himself a
power of revocation which he releases in his lifetime, no pro-
perty could be said to "pass under " the settlement on his (A.'s)
death. If the power has not been released, B. and C. take that
absolutely which was before defeasible, and the property might
fairly be said to "pass under" the settlement. A policy of
assurance on the settlor's life, settled by an instrument con-
taining a general power of revocation would, it is thought, be
liable to estate duty, even if the power was released.

As to the time, before the settlor's death, within which a
voluntary release of a power of revocation and a general power
of appointment must be effected, see p. 10, supra. As to the
effect of sect. 3 (p. 16, infra), see note on "Interest for life,"
(p. 12, supra).

(d) Any annuity or other interest purchased or pro-
vided by the deceased either by himself alone or in
concert or by arrangement with any other person,
to the extent of the beneficial interest accruing or
arising by survivorship or otherwise on the death
of the deceased.

Any annuity. The following are examples of annuities fall-
ing under this sub - clause :—(i) An annuity payable to the de-
ceased during his Hfe, and after his death to A. for his life, or a
certain number of years, (ii) An annuity payable to the de-
ceased and A., either jointly or in various proportions, during
their joint lives, and after the death of the deceased to A., if he
survives, for his life, or a certain number of years, (iii) An
annuity payable to the deceased and A., either jointly or in
various proportions, during their joint lives, and after the death
of one to the survivor for his life, or a certain number of years.

14 DEATH DUTIES (eNGLAND).

§ 2. (iv) An annuity in favour of A. for his life, or a certain number

of years commencing after the deceased's death. The annuity

need not be purchased entirely by the deceased, but he must
have some share in the transaction.

The qiumtum upon which estate duty becomes payable on the
death of the deceased is the extent of the beneficial interest
accruing or arising on the death of the deceased — i. e., in
examples (i) and (iv) the capital value, according to A.'s age or
the number of years for which the annuity is payable, of the
whole annuity; and in cases (ii) and (iii) the capital value,
according to A.'s age or the number of years for which the
annuity is payable, of so much of the annuity as becomes pay-
able to him by reason of the deceased's death. If A. has con-
tributed to the purchase of the annuity, the amount contributed
by him would, it is presumed, be allowed as a deduction from
the quantum charged with estate duty. (Sect. 3 (2), p. 16,
h)fra.) In examples (ii) and (iii) the amount contributed by
A. would have to be part of the consideration paid for the
deceased's share of the annuity. An annuity, not exceeding
257., purchased or provided by the deceased either by himself
alone, or in concert or arrangement with any other person, for
the life of himself and some other person, and the survivor of
them, or to arise on his own death in favour of some other
person, and a pension or annuity, payable by the Indian Govern-
ment to the widow or child of a deceased Indian officer, are, by
sect. 15 (1) & (3), (p. 69, infra), exempted from the payment of
estate duty.

Annuities charged on or issuing out of property might fall
under this sub -clause; but they are, it is conceived, more pro-
perly dealt with as falliDg under sub-clause (a), (p. 5, supra).

Or other interest. These words are inserted to bring within
the definition of property passing on death cases which might
be argued do not fall under sub-clause (c); e.g., a policy of
insurance effected by the deceased, or an arrangement entered
into by him, whereby a sum of money becomes payable on his
death to his wife or children.

The quantum in these cases chargeable with estate duty is
arrived at in the same manner, and after making the same
deductions, as in the case of annuities.

(2.) Property passing on tlie death of the deceased
when situate ont of the United Kingdom shall be
included only if under the law in force before the
passing of this Act, legacy or succession duty is payable
in respect thereof, or would be so payable but for the
relationship of the person to whom it passes.

Legacy or succession duty. Property situate out of the United
Kingdom liable to legacy or succession duty consists of : (i) per-
sonal or moveable property situate out of the United Kingdom
which passes upon the death of a testator, or intestate, or pre-
decessor domiciled in the United Kingdom, the local situation of

57 & 58 Vict. c. 30. 15

the property being immaterial {Re Eiuin, 1 Cr. & Jerv. 151; § 2.

Thomson v. The Advocate- General, 13 Sim. 153, 12 CI. & Fin. 1);

(ii) personal or moveable property which is comprised in an
English settlement, and vested in trustees subject to the juris-
diction of the Courts of the United Kingdom {Be Cigala, 7 Ch.
D. 351) ; (iii) the share of a deceased partner who died domiciled
in the United Kingdom, in real estate belonging to the partner-
ship {Forbes v. Stevens, 10 Eq. 178 ; The Attorney -General v.
Huhbuck, 13 Q. B. D. 275).

Eeal property situate out of the United Kingdom passing on
the death of a person domiciled in the United Kingdom, legacies
and annuities charged thereon, and the proceeds of sale thereof
if directed to-be sold, are not liable to either legacy or succession
duty.

Or would be so liable but for the relationship of the

person to whom it passes. I.e., if the property passes to the
husband or wife of the deceased. Lineals were not before this
Act exempted from legacy duty in respect of foreign personalty
liable to duty, sect. 4 1 of the Customs and Inland Eevenue Act,
1881, only applying to cases in which probate or account duty
had been paid.

(3.) Property passing on the death of the deceased
shall not be deemed to include property held by the
deceased as trustee for another person under a disposi-
tion not made by the deceased, or under a disposition
made by the deceased more than twelve months be-
fore his death where possession and enjoyment of the
property was bond fide assumed by the beneficiary
immediately upon the creation of the trust, and thence-
forward retained to the entire exclusion of the deceased,
or of any benefit to him by contract or otherwise.

Under a disposition made by the deceased more than, &c.

Under sub-sect. (1) (c), (p. 8, supra), property settled by the
deceased on another person within twelve months of his death
is deemed to pass on his death. By the same sub-section, pro-
perty settled by the deceased on another person more than
twelve months before his death is also deemed to pass on his
death, unless the possession and enjoyment of the property was
bond fide assumed by the beneficiary immediately upon the
creation of the trust, and thenceforward retained, to the entire
exclusion of the deceased, or of any benefit to him by contract
or otherwise. Under sect. 22 (2) (a), (p. 85, r/?/ra),' a person
having a power of disposition exerciseable in a fiduciary capacity,
under a disposition made by himself is, it would seem, to be
deemed to be competent to dispose of the jDroperty. The result
9-ppears to be that settlors would do well not to be trustees of
the settlements effected by them.

16^

DEATH DUTIES (eNGLAND).

§3.

Exception for
transactions
for money-
consideration.

3. — (1.) Estate duty sliall not be payable in respect
of property passing on the death of the deceased by
reason only of a bond fide purchase from the person
under whose disposition the property passes, nor in
respect of the falling into possession of the reversion
on any lease for lives, nor in respect of the determination
of any annuity for lives, where such purchase was made,
or such lease or annuity granted, for full consideration
in money or money's worth paid to the vendor or grantor
for his own use or benefit, or in the case of a lease for
the use or benefit of any person for whom the grantor
was a trustee.

(2.) Where any such purchase was made, or lease or
annuity granted, for partial consideration in money or
money's worth paid to the vendor or grantor for his
own use or benefit, or in the case of a lease for the use
or benefit of any person for whom the grantor was a
trustee, the value of the consideration shall be allowed
as a deduction from the value of the property for the
purpose of estate duty.

By reason only of a bona fide purchase from the person
under whose disposition the property passes.

ExampJes. — (i) A. being absolutely entitled to property, con-
veys it for full value to B., reserving to himself a life interest.
It is conceived that estate duty is not payable on A.'s death.
(ii) A. effects a policy of assurance on his life in the name of B.
to secure a sum advanced by B. (together with interest, pre-
miums, i&c). On A.'s death, the moneys payable to B. under
the policy in respect of the amount due to him from A. are not
chargeable with estate duty, (iii) A. assigns a policy of assur-
ance belonging to him (whether on his own life or that of some
other person) to B. for value. Estate duty is not payable by B.
on the falling in of the life assured, (iv) A. being entitled to
Whiteacre in fee simple, grants to B. for full value an annuity
charged thereon, to commence at A.'s death. Estate duty is not
payable on A.'s death.

Nor in respect of the falling into possession of the rever-
sion on any lease for lives. Leases granted for a series of
lives would, but for this section, be liable to estate duty upon
the falling in of the last life, even though the grantor and the
persons claiming through him had received full value for the

57 & 58 Vict. c. 30. 17

lease, either by way of fine or in rent, or partly in one way and § 3.

partly in the other. Leases for lives are, as a rule, granted for

lives of persons entirely unconnected with the property, e.g., the
Queen or other members of the Eoyal Family.

Nor in respect of the determination of any annuity for

lives. A person having a limited interest in settled property
frequently raises money by granting an annuity out of his
interest to the person advancing the money. Estate duty is not,
in such a case, payable on the death of the grantor, when, of
course, the annuity ceases. If the advance is covered by an
assignment of a policy of assurance on the life of the grantor of
the annuity, the first part of this sub- section would apply.

For full consideration. I.e., for what was full considera-
tion at the time of the sale or grant. Thus it is thought that
the surrender value of a policy of assurance would, if paid on
an assignment of the policy during the life of the assured, be
•' full consideration."

Money or money's worth. The effect of these words is to
exclude from the operation of the section transactions which
were effected in consideration of marriage, or as part of a family
arrangement (cf. The Succession Duty Act, 1853, s. 17; FloyevY,
Bankes, 9 Jur. N. S. 1256 ; 3 De G. J. & S. 306 ; James v. James,
2 Brod. & Bing. 702 ; Blake v. Attersoll, 2 Barn. & Cr. 875 ;
Tetley v. Tetley, 4 Bing. 214).

For his own use or benefit. These words appear to be
inserted to meet the case of collusive transactions. It is, how-
ever, thought that if the consideration was paid to a third person
on the request of the vendor or grantor, the consideration would,
so far as the person making the payment was concerned, be
deemed to be paid to the vendor or grantor for his own use or
benefit.

Deductions. Deductions from the value of property are
dealt with in sect. 7 (1) (p. 34, infra).

4. For determining the rate of estate duty to be paid Aggregation
on any property passing on tlie death of the deceased, form°(Sie ^
all property so passing in respect of which estate duty pu^ose°of
is leviable shall be aggregated so as to form one estate, ^^*y-
and the duty shall be levied at the proper graduated
rate on the principal value thereof :

Provided that any property so passing, in which the
deceased never had an interest or which under a disposi-
tion not made by the deceased passes immediately on
the death of the deceased to some person other than the

F. C

IS DEATH DUTIES (eNGLAND).

§ ^* wife, or husband, or a lineal ancestor or lineal descen-
dant of the deceased, shall not be aggregated with any
other property, but shall be an estate by itself, and the
estate duty shall be levied at the proper graduated rate
on the principal value thereof, but if any benefit under
a disposition not made by the deceased is reserved or
given to the wife, or husband, or a lineal ancestor, or
lineal descendant of the deceased, such benefit shall be
aggregated with property of the deceased for the pur-
pose of determinicg the rate of estate duty.

For determining the rate, &c. As to appeals from the
determination of the Commissioners under this section, see
sect. 10 (p. 59, infra).

All property so passing shall be aggregated. The follow-
ing property passing on the death of the deceased is not aggre-
gated : (1) Property not itself chargeable with or liable to estate
duty, e. g., the property, a list of which is given on p. 2, supra
[notes to sect. 1). (But qvcere as to reversionary interests the
estate duty on which has been. commuted under sect. 12, p. 65,
infra.) (2) Property which is itself chargeable with or liable to
estate duty, but which, under the proviso to this section, or under
sect. 16 (3) (p. 71, infra), devolves as an estate by itself.

What is aggregated for the purj)Ose of ascertaining the estate,
is the princiiml value (ascertained as provided by sect. 7, p. 34,
infra) of the various items of property passing.

At the proper graduated rate. (Sect. 17, p. 74, infra.)

Principal value. (Sect. 7, p. 34, infra.)

Provided that any property so passing . . . shall be an

estate by itself. The following property passing on the death
of the deceased is not aggregated with any other property, but
is in each case chargeable with duty as an estate by itself :

(i) Property in which the deceased never had an interest.

Eorample : — Property settled upon A. during the life of the
deceased, and after the death of the deceased upon B.

(ii) Property which, under a disposition not made by the
deceased, passes immediately on his death to some person other
than the wife or husband, or a lineal ancestor or lineal descendant
of the deceased.

Kxumjph : — Property settled by A. on the deceased for life,
with remainder, if the deceased dies without male issue (which
event happens), to a nephew of the deceased.

If, however, the property passed immediately on the deceased's
death to his or her wile or husband, or lineal ancestor or descen-
dant, the property would in that case be aggregated with the
deceased's other property, even though it passed under a dis-

/ 57 & 58 Vict. c. 30. 4'0

position not made by the deceased; e.g.^ one made by tbe §4.
deceased's father. (See next note.)

This section, combined with the next section, produces some
curious results, as the following example shows : —

Example. — Property is settled by A.'s father upon A. for life,
with remainder to A.'s nephew for life, with remainder to A.'s
daughters. On A.'s death there is under this section no aggre-
gation, and the estate duty payable on A.'s death covers, by
virtue of the next section, the duty otherwise payable on the
death of A.'s nephew. If, however, the property were settled,
after A.'s death, on his daughters for life, with remainder to
his nephew, there would equally be only one estate duty
payable (viz. on A.'s death), but there would in this case be
aggregation.

But if any benefit, &c.

' .Example. — Property is settled by A. on the deceased for life,
with remainder to trustees to secure a rent-charge to the de-
ceased's widow during her life, with remainder to the deceased's
nephew. In this case the value of the annuity (ascertained as
provided by sect. 7 (7), p. 43, infra) is aggregated with the de-
ceased's other property, and the estate duty is payable thereon
at the proper graduated rate, according to the value of the de-
ceased's aggregated estate. The rest, however, of the settled
property, after deducting the value of the annuity, devolves as
an estate by itself, and estate duty is payable accordingly.

The foregoing example is, it is thought, tolerably clear.
There is, however, considerable doubt as to the precise effect of
the words " but if any benefit," &c. in the following cases : —
(i) Property is settled by A. on B. during the life of the
deceased, with remainder on the death of the deceased
to the deceased's son.
(ii) Property is settled by A., as to one-half thereof on the
deceased for life, and as to the other half on B. during
the life of the deceased, with remainder as to the whole
on the death of the deceased to the deceased's son.

In each case the whole jDroperty passes, on the deceased's
death, to his son. Should the settled property be aggregated to
■ any, and, if so, to what extent with other property passing on
the deceased's death ?

It is submitted (though with diffidence) (1) that the words
*' but if any benefit," &c., are to be taken as limiting the second
alternative at the commencement of the proviso onlt/ and not
the first alternative, and that consequently, if the deceased
never had an interest in the property, there would be no aggre-
gation even if it passed, on his death, to his son ; (2) that there
would only be aggregation to the extent of any benefit accruing
from the deceased to his son, &c. : e. g., in the second of the two
cases last given, the luhole property would not be aggregated,
but ojily the principal value of one-half of the income. (Sect. 7
(7), p. 43, i7ifra.)

perty.

20 DEATH DUTIES (eNGLAND).

8 Q* 5,^(1.) Where property in respect of which estate

Settled pre- dutj is leviable is settled by the will of the deceased, or
having been settled by some other disposition passes
under that disposition on the death of the deceased to
some person not competent to dispose of the property —

(a) A further estate duty called Settlement estate
duty on the principal value of the settled property
shall be levied at the rate hereinafter specified,
except where the only life interest in the property
after the death of the deceased is that of a wife or
husband of the deceased ; but

(b) During the continuance of the settlement the
Settlement estate duty shall not be payable more
than once.

This sub-section deals with the incidence of the Settlement
estate duty.

This is a duty at the rate of one per cent. (sect. 17, p. 74,
infra), which is (in certain cases) charged on settled property,
by way of countervailing the exemj)tion granted to settled pro-
perty from estate duty under the following sub- section.

In respect of which estate duty is leviable. Settled pro-
perty, if not otherwise chargeable with estate duty, does not fall
within this section, e.g., a settled advowson (sect. 15 (4), p. 70,
infra), or settled personalty, in respect of which probate or
account dut}^ has been j)aid (sect. 21 (1), p. 79, infra).

Settled. It is conceived that property is only " settled," by
the will of the deceased, if it passes to some person not " com-
p3tent to dispose of the property."

By the will of the deceased, or having been settled by

some other disposition. Settlement estate duty is not charge-
able in respect of property settled by an instrument taking
effect before the 1st August, 1894 (see sect. 21 (4), p. 81,
infra; sect. 24, p. 91, infra).

Passes to some person not competent to dispose of the
property. See sect. 22 (2) (a) (p. 85, infra), for the definition
of a person competent to dispose of property. If the property
passes to a person competent to dispose of the property (e. g. , a
tenant in tail, or a person having a general power of appoint-
ment), Settlement estate duty will not be chargeable, inasmuch
as, on the death of that person, the exemption given by the
following sub -section will not aj)ply ; and estate duty will be
paid in the ordinary way under sect. 2 (1) (a). As to the

. ^7 & dS Vict. c. 30. 21

position of a tenant in tail in remainder, see note on sub -sect. (3), 5 5»
infra. !

Settlement estate duty. The following are the points to be
remembered with regard to the incidence of Settlement estate
duty.

(i) The property must be settled by the will of a person dying
after 1st August, 1894 (sect. 21 (4), p. 81, infra; sect. 24,
p. 91, infra) ; or (ii) the property, if settled by some other dis-
position (which must also take eifect after 1st August, 1894
(sect. 21 (4), p. 81, infra), must pass to some person not competent
to dispose of the property (see sect. 22 (2) (a) ) ; (iii) the duty is not
charged if the only life interest in the property, after the de-
ceased's death, is that of the wife or husband of the deceased ;
(iv) the duty is chargeable only once during the continuance of
the settlement ; (v) the duty is not charged in respect of pro-
perty settled by the will of the deceased, if the net value of all
property in respect of which estate duty is leviable on his death
(exclusive of property settled otherwise than by his will) does
not exceed 1,000/.
Examples :

(i) Property (whether real or personal) is settled by the will
of a person dying after 1st August, 1894, or by an in-
strument which has taken effect after 1st August, 1894,
upon A. for life, and after A.'s death, upon B. absolutely.
Upon the death of the deceased, Settlement estate duty
(as well as estate duty) is chargeable on the property.
If A. dies in the lifetime of the deceased, so that the
property passes immediately to B, for an absolute in-
terest, the Settlement estate duty would not, it is
thought, be payable on the death of the deceased.

If A. happens to be the wife or husband of the de-
ceased. Settlement estate duty is not payable.

If the property was settled by some instrument other
than a will, such instrument may have been made either
by the deceased, or some other person,
(ii) Eeal property is settled (after 1st August, 1894), by A.
upon himself for life, with remainder to B. for life,
wdth remainder to C. in tail.
B. predeceases A.

Settlement estate duty is not payable on A.'s death,
(iii) Personal property is settled (after 1st August, 1894)
upon A. for life, and, after A.'s death, on B. for life,
and, after B.'s death, as B. shall generally by will
appoint.

Settlement estate duty is not payable on A.'s death,
(iv) Eeal property is devised by A. (dying after 1st August,
1894) to his eldest son in tail, with remainders over.
Settlement estate duty is not payable on A.'s death,
(v) Personal property is bequeathed by A. (dying after 1st
August, 1894) in trust for B. for life, and, after B.'s
death, for B.'s appointees.
Settlement estate duty is not payable on A.'s death.

22 DEATH DUTIES (eNGLANd).

a ^* (vi) Property is settled (after 1 st August, 1894) upon A. (hus-

~^' band) for life, with remainder to B. (wife) for life, with

remainder to the children.

Settlement estate duty is not payable on A.'s death,
(vii) Property is settled upon A. for life, with remainder to
B. for life, with remainder to C. for life, with remainder
to D. absolutely.

Settlement estate duty is payable on A.'s death, but
not on B.'s death.

Principal value. Settlement estate duty is, like estate duty
(sect. 1, p. 2, supra), levied on the principal value (sect. 7,
p. 84, infra) of the property.

At the rate hereinafter specified. I.e. one per cent.

(sect. 17, p. 74, infra).

Except where the only life interest. Vide supra. Qimre,
whether the Settlement estate duty is payable if there are tiuo
or more life interests, one being that of the deceased's wife.

During the continuance of the settlement. Vide supra,

Example (vii). These words are necessary in order to prevent
the Settlement estate duty being paid more than once in respect
of the same settled property ; otherwise, if there were two or
more successive life interests arising after the death of the de-
ceased under the settlement. Settlement estate duty would be
payable as often as the property passed to a life tenant.

(2.) If estate duty has already been paid in respect
of any settled property since the date of the settlement,
the estate duty shall not, nor shall any of the duties
mentioned in the fifth paragraph of the First Schedule
to this Act, be payable in respect thereof, until the
death of a person who was at the time of his death or
had been at any time during the continuance of the
settlement competent to dispose of such property.

Under this sub-section, if estate duty has once been paid on
settled property, no further payment of estate duty is required
until the death of some person who, under the limitations of the
settlement, is competent to dispose of the property {e.g. a tenant
in tail or a person with a general power of appointment, whether
by deed or will, or both. See sect. 22 (2) (a), p. 85, infra).
Upon the death of such a person, estate duty is charged on the
property under sect. 2 (1) (a).

Settled property. By sect. 22 (1 ) (h), settled property is defined
to mean " proj)crty comprised in a soltlcment." It is conceived,
therefore, that the exemption given by this sub-section would

57 & 58 Vict. c. 30. 23

apply if, Tinder the limitations or trusts of a settlement, property § 6.

passes on the death of the deceased to some person absolutely.

(23 Hansard, 4th Ser., p. 522.)

Example. — Property is settled upon A. for life, with remainder
to B. for life, with remainder to C. absolutel5^ Estate duty is
paid on A. 's death. On B.'s death no estate duty, it is thought,
becomes payable, although 0. takes absolutely.

The estate duty shall not. It must be borne in mind that
under sect. 21 (1), personalty settled by a will taking effect on or
before 1st August, 1894, or by an instrument falling under the
Customs and Inland Eevenue Act, 1881, sect. 38 (2) (c), where
the settlor has died on or before 1st August, 1894, is not liable to
estate duty at all. All other settled property, whenever settled,
is liable to, at any rate, orie payment of estate duty, though pro-
perty settled before 1st August, 1894, is not liable to Settlement
estate duty.

Nor shall any of the duties mentioned in the fifth para-
graph, &C. The duties referred to are the one per cent, legacy
and succession duties payable by lineals. By sect. 1 (p. 2,
supra) they are by implication chargeable if the property is not
charged with estate duty. Under this section, if settled pro-
perty is once cleared of estate duty, it is also cleared of the one
per cent, legacy or succession duty until estate duty becomes
again payable. Temporary estate duty under the Act of 1S89,
s. G, and the additional succession duties under the Act of 1888,
s. 21, remain, it is thought, payable in such a case {qiKxre, how-
ever, as to the ^ per cent, additional succession duty : see note
to sect. 1, *' The existing duties," p. 4, supra).

Until the death of a person who was at the time of his
death . . . competent to dispose.

Example. — Property is settled on A. for life, with remainder
to B. in tail. Estate duty is payable on A.'s death. B. dies
without disentailing. Estate duty is paid on his death.

Had been at any time during the continuance, &c.

Examples : —

(i) Property is settled on A. for life, with remainder to B.
for life, with a general power of appointment.
B. releases this general power. Estate duty is paid on A.'s
death and also on B.'s death.

(ii) Property is settled on A. for life, with remainder to B.

in tail. B. disentails and resettles on himself for life,

with remainders over. Estate duty is payable on A.'s

and also on B.'s death.

A difficulty will, it is thought, arise in determining, in the

case of composite settlements and re-settlements, what exactly

is the settlement, during the continuance of which the deceased

was competent to dispose of the property. For instance, property

is, in 1860, settled (subject to charges) to such uses as A. and

B. shall jointly appoint, and subject thereto to the use of A. for

24 DEATH DUTIES (eNGLANd).

§ 5. life, with remainder to the use of B. for life, with remainder

to B.'s sons in tail. In 1890 the property is, by means of the
joint power of appointment, resettled (subject to charges) to such
uses as A., B., and C. (B.'s son) shall jointly appoint, and sub-
ject thereto to the use of A. , B., and C, successively for life,
with remainder to C.'s sons in tail. Tbe settlements of 1860 and
1890 constitute one composite settlement, the date of which is
1890. Could C. be said to have been competent to dispose of
the property during the continuance of the settlement ?

It is suggested (though not with confidence) that in the case
of composite settlements, and resettlements effected at any rate
before 1st August, 1894, the settlement actually in operation on
the 1st of August, 1894, must be taken as the settlement re-
ferred to in this sub- section, so that, in the example last given,
C. would not have been competent to dispose of the property
during the continuance of the settlement. And this it is thought
would be the case even if the resettlement had been effected by
means of C. disentailing instead of by the exercise of the joint
power of appointment. In cases of composite settlements, and
resettlements, effected bymeans of the exercise of a joint power of
appointment after the 1st August, 1894, it is thought that estate
duty would again become payable on the death of the person
who would have been competent to dispose of the property if
the settlement in operation at the date when the first or ' ' clear-
ing" payment of estate duty was made, had been left to work
itself out. It is fairly clear that this would be the case if the
resettlement had been effected by means of a disentail. The
payment of duty on the death of the person competent to dispose,
above referred to, will in its turn clear the property till the
death of a person who, under the resettlement, is or might have
been competent to dispose of the property.

The section is silent with regard to jointures and portions. It
is, however, conceived that no duty would be payable on the
death of a person not competent to dispose of the settled pro-
perty in respect of the jointures or portions raised on his death
under limitations, trusts, or powers contained in the settlement,
or on the cesser of any annuity or rent- charge limited to a
person for life and charged on the settled property, if estate
duty has already, on the occasion of a prior death, been paid
in respect of the settled property during the continuance of
the settlement. Secus, however, in the case of a jointure or
portion raised on the death of a person under a general power
vested in him to charge the property. (See sect. 22 (2) (c),
p. 86, infra.)
Examples :

(i) Property is settled on A. for life, with remainder to B.
for life, with remainder to secure a jointure rent-charge
to C. (B.'s wife), with remainder to raise 10,000?., por-
tions for B.'s younger children, with remainders over.

On A.'s death, estate duty and Settlement estate duty
are paid. It is conceived that on B.'s death, the settled
property being cleared of duty, C. will be entitled to
her jointure, and B.'s younger children to their por-
tions, clear of duty.

57 & 58 Vict. c. 30. 25

(ii) Property is settled on A. for life, with remainder to B. § 6.

in tail, with remainder to secure a jointure to B.'s

wife.

A. dies. B. then dies without disentailing. Estate
duty is paid on B.'s death (he being competent to dis-
pose of the property) and C. has to contribute her share
of that duty rateably in proportion to the value of her
jointure (sect. 14 (1), p. 67, infra).

(iii) Property is settled on A. for life, but a power is reserved
to him to charge 10,000/. by will on the estates for
such persons and purposes as he thinks fit. A. by his
will charges the estates with 5,000/. in favour of B.

B. has to pay estate duty on the 5,000/. whether
estate duty has or has not been paid on a prior death
on the settled property.

(iv) Under a will or settlement taking effect before the
1st August, 1894, personal property in respect of which
probate or account duty, as the case may be, has been
paid, is settled on A. for life, and after A.'s death upon
trust to raise 5,000/. for B., and subject thereto the
property is to be held in trust for G. for life, and after
C.'s death for C.'s children.

Estate duty is not, it is submitted, paid on A.'s death

on the 5,000/. which is then raised, that sum forming

part of the property in respect of which probate or

account duty has been paid.

There is some doubt how rent- charges, charged by the settlor

in his lifetime upon the settled estates, will be dealt with.

Example. — A. being seised in fee of Blackacre, executes a
settlement by which he charges it with an annuity in favour of
B. : subject thereto he settles the estate on himself for life, with
remainder to C. in fee. It would appear that on A.'s death
(which takes place in B.'s lifetime) no deduction could be made
for B.'s annuity. (See sect. 7(1) (a).) C. would therefore, ac-
cording to this, have to pay on the whole estate. On B.'s death
he would have to pay estate duty again (sect. 2 (1) (b) ), the case
not falling within sect. 7 (10), (p. 45, infra).

This seems hard on C. It is suggested that the capital value
of B.'s annuity might be treated as an interest in expectancy
(see sect. 22 (1) (j), p. 83, infra) to which A. was entitled for
life contingently upon his surviving B. As he dies before B.,
his interest fails, and under the next section the property (i. r.,
the capital value of the annuity) is not deemed to pass on his
death. The result would then, so far as C. is concerned, be the
same as if a deduction was made on A.'s death of the capital
value of the annuity.

Estates in dower, and by the courtesy, and any like estate,
are treated as if settled by the will of the deceased.

Example : —

(i) A. becomes, on her husband's death, entitled, as doweress,
to one-third of Whiteacre for life. She pays estate duty
(but not Settlement estate duty, sub-sect. 1 (a) ) in respect
of the principal value of one-third. On A.'s death her

26 DEATH DUTIES (eNGLAND).

8 ^» husband's heir has not to pay estate duty in respect of

- ~~" the one-third, and, if a lineal, succession duty.

(ii) A. becomes, on his wife's death, entitled, as tenant by the
courtesy, to Whiteacre for life. He pays estate duty
(but not Settlement estate duty, vide p. 21, supra), and
on his death his wife's heir escapes duty, and, if a lineal,
succession duty.

(3.) In the case of settled property, where the
interest of any person under the settlement fails or
determines by reason of his death before it becomes an
interest in possession, and subsequent limitations under
the settlement continue to subsist, the property shall not
be deemed to pass on his death.

In order that there may be an exemption from estate duty
under this sub -section, the following conditions must be ful-
filled:— (a) The interest of the deceased under the settlement
must be an interest in expectancy or remainder, and must fail
or determine by reason of his death, (b) Subsequent limitations
under the settlement must continue to subsist.
Examples :

(i) Property is settled on A. for Hfe, with remainder to B.
for life, with remainder to C.

B. predeceases A. Estate duty is not payable on B.'s
death,
(ii) Property is settled on A. for life, with remainder to B.
in tail male, with remainder to 0. in tail male.

B. predeceases A. sine prole. Here B.'s interest
under the settlement (namely, his estate tail in remain-
der) fails, and a subsequent limitation (namely C.'s
estate tail in remainder) continues to subsist. It is
conceived that estate duty is not payable on B.'s death,
though B. was, strictly speaking, "competent to dis-
pose of the property" (see sect. 2 (1) (a), p. 5, supra,
and sect. 22 (2) (a), p. 85, infra).
(iii) Property is settled on A. for life, with remainder to B. in
tail male, with remainders over.

B. dies before A., leaving a son. In this case B.'s
estate tail does not fail on his death, and estate duty
would, it is thought, be payable,
(iv) Property is settled upon A. for life, with remainder to B.
in tail or for life, with no remainders over.

B. dies before A, sine prole, and the property passes
to the heirs of the settlor. Estate duty is payable on
B.'s death, as no Hmitations under the settlement con-
tinue to subsist.
Estate duty will, of course, be payable on the death of a
tenant in fee in remainder under a settlement as well as subse-
quently upon the death of the tenant for life. If the estate in
fee is subsequent to an estate tail, recourse can with advantage
be had to the provisions of sect. 7 (6), (p. 42, infra).

57 & 58 Vict. c. 30. 27

(4.) Any person paying the Settlement estate duty § ^'
payable under this section upon property comprised in a
settlement, may deduct the amount of the ad valorem
stamp duty (if any) charged on the settlement in respect
of that property.

Any person paying. The persons who are made accountable
for the duty on settled property consist of beneficiaries in posses-
sion, trustees, guardians, committees, and voluntary alienees
(sect. 8 (4) p. 49, infra). Executors are authorized to pay the
duty if requested by the person accountable. As to raising the
money for duty, &c., see sect. 8 (5), (6), (7).

May deduct the amount of the ad valorem stamp duty.

I.e. OS. per cent, (see the Stamp Act, 1891, Sched.).

The ad valorem stamp duty can only be deducted from the
Settlement estate duty. If, therefore, no Settlement estate duty
is payable {e.g. by reason of the settlement having been made
before 1st August, 1894, or by reason of the only life interest
under it being that of the husband or wife of the deceased), no
deduction can be made.

If any. These words are inserted, as there is no ad valorem
duty chargeable on a settlement of real estate.

In respect of that property. Upon a settlement of mixed
realty and personalty, stamp duty is only payable in respect of
the personalty. As between the persons interested in the
respective classes of property, the deduction should be made
from the Settlement estate duty upon the settled personalty.

(5.) Where any lands or chattels are so settled,
whether by Act of Parliament or Eoyal Grrant, that no
one of the persons successively in possession thereof is
capable of alienating the same, whether his interest is in
law a tenancy for life or a tenancy in tail, the provi-
sions of this Act with respect to settled property shall
not apply, and the property passing on the death of any
person in possession of the lands and chattels shall be
the interest of his successor in the lands and chattels,
and such interest shall be valued, for the purpose of
estate duty, in like manner as for the purpose of suc-
cession duty.

Where any lands or chattels, &c. This sub-section deals
with the case of estates inalienably settled or entailed by an Act
of Parliament or Eoyal Charter, each of which instruments is a

28 DEATH DUTIES (eNGLAND).

§ 6, settlement within the meaning of the Settled Land Act, 1882,

sect. 2 (1) (see sect. 22 (1) (i), p. 83, infra).

Property inalienably settled or entailed in this manner can
(unless the property was purchased with money provided by
Parliament in consideration of public services) be sold under
the Settled Land Act, 1882 (see sect. 58 (1) (i) of that Act).
Thus the estates settled on the Dukedom of Wellington and
the Earldom of Nelson cannot be sold under the Settled Land
Acts, but secus in the case of the lands settled on the Dukedom
of Marlborough [Re The Duhe of Marlborough, 8 Times L. E,.
582), the Earldoms of Shrewsbury and Abergavenny, and all
lands which, prior to the Settled Land Act, 1882, had become
inalienably entailed under the Act 34 & 35 Henry 8, c. 20. It
is conceived, however, that notwithstanding sect. 58 of the
Settled Land Act, 1882, the sub- section under consideration
extends to all the cases noticed above. If the settled property
is sold in either of the cases mentioned above, the tenant in tail
cannot disentail, and get possession of the proceeds of sale. The
same reasoning applies to the case of chattels inalienably settled.
The power of sale given to tenants for life by the Settled Land
Act, 1882, is a fiduciary power, and does not render a tenant for
life, or, it is submitted, a tenant in tail, of an inalienably entailed
estate competent to dispose of the property (see sect. 22 (2) (a),
p. 85, infra).

The provisions of this Act with respect to settled pro-
perty shall not apply. In the cases above referred to, the
settlement under the Act of Parliament or Eoyal Charter cannot
be put an end to, and, except for this sub-section, one payment
of estate duty would exonerate the property from the payment
of any further duty for all time.

The property passing . . . shall be the interest of his
successor . . . and shall be valued ... in like manner as
for the purpose of succession duty. See the Succession Duty
Act, 1853, sects. 21—26, 28, 31, 32.

Collection and Recovery of Duty and Value of Property.
Collection and 6. — (1.) Estate duty shall be a stamp duty, collected

recovery of . .

Estate duty. aud recovered as hereinafter mentioned.

(2.) The executor of the deceased, shall pay the
estate duty in respect of all personal property (where-
soever situate) of which the deceased was competent to
dispose at his death, on delivering the Inland Eevenue
affidavit, and may pay in like manner the estate duty
in respect of any other property passing on such death,
which by virtue of any testamentary disposition of the

. 57 & 58 Vict. c. 30. 29

deceased is under the control of the executor, or in the § 6.
case of property not under his control, if the persons
accountahle for the duty in respect thereof request him
to make such payment.

Estate duty. This expression, as used throughout the Act,
includes, where the context requires it, the Settlement estate
duty, as well as the estate duty proper (see 26 Hansard, 4th Ser.,
p. 1645).

Stamp duty. By sect. 8 (16) (p. 54, infra), the duty is to
be collected by means of stamps, or such other means as the
Commissioners prescribe. Under the Customs and Inland
Eevenue Act, 1881, the Inland Eevenue affidavit has to bear a
stamp showing the amount of the probate duty, and the account
delivered in respect of property liable to account duty, a stamp
showing the amount of such duty.

Collected and recovered as hereinafter mentioned. See

the other provisions of this section, and also sects. 8 and 9
(pp. 45 to 59, infra).

The executor. "The executor" in this Act means the
executor or administrator of a person dying after the 1st August,
1894, and, as regards any obligation under this and the follow-
ing sections, includes any person who takes possession of, or
intermeddles with, the personal property of a deceased person
(sect. 22 (1) (d), p. 82, i„fm).

Shall pay the estate duty in respect of all personal
property (wheresoever situate) of which the deceased was
competent to dispose at his death on delivering the Inland
Revenue affidavit. The liability imposed on the executor is to
pay the estate duty on all the free personalty of the deceased,
whether in the United Kingdom or not, including personalty
over which the deceased had a general power of appointment
which he did not exercise. (See sect. 22 (2) (a), p. 85, infra.)
This liability, is, however, limited to the amount of the assets
which he has received as executor, or might, but for his own
neglect or default, have received. (Sect. 8 (3), p. 48, infra.)

The executor must to the best of his knowledge specify in
appropriate accounts annexed to the Inland Eevenue affidavit
(see sect. 8 (3), p. 48, infra) all the property passing on the
deceased's death liable to duty, and the rate of the estate duty
will, in the first instance, be calculated upon the value of the
estate as appearing in these accounts. (Sect. 8 (7), p. 52,
infra.) "The existing law and practice" relating to the col-
lection and recovery of probate duty being made applicable to the
collection and recovery of estate duty (sect. 8 (1), p. 45, infra),
it is presumed, that the Commissioners will, upon being satisfied
with the prima facie cori-ectness of the Inland Eevenue affidavit
and the annexed accounts, allow the affidavit to be stamped, so
as to enable j)robate to be granted under the Customs and Inland

30 DEATH DUTIES (eNC^LANd).

§ 6. Bo venue Act, 1881, s. 30. If it should turn out that too little

duty has been paid, the matter would be dealt with by means of

a supplemental or corrective affidavit.

The " Inland Revenue affidavit " will continue to be the same
as that hitherto in use (see sect. 22 (1) (n), p. 84, infra), subject
to such modifications as may be necessary to carry out the pro-
visions of the Act. (See the following sub-sections, and sect. 8
(14), p. 54, infra.)

If the executor does not know the amount or value of any
property which has passed on the death, he is, by the following
sub-section allowed, upon certain terms, to make a statement to
that effect in his affidavit. It is presumed that the duty will
then, for the purposes of stamping the Inland Revenue affidavit,
be calculated upon the value of the property appearing in the
accounts annexed thereto, and that upon payment of the duty
at the rate so ascertained upon the property appearing in the
accounts, for the duty upon which the executor is liable, the
affidavit will be stamped and probate granted. (See 25 Hansard,
4th Ser., p. 881, and sect. 8 (17), p. 54, infra).

By sect. 8 (9) (p. 52, infra), the Commissioners are autho-
rised in certain cases, to allow the payment of the duty to be
postponed. In such cases probate will, it is thought, be granted.
(See 26 Hansard, 4th Ser., p. 1616, and sect. 8 (17), p. 54, infra.)

The duty on property passing to the executor, as such, will be
paid as probate duty was formerly paid, (viz.) out of the general
personal estate. The duty on personal property which does not
pass to the executor, as such, but for the duty on which the
executor is liable {e.g. foreign free personalty and personalty over
which the deceased had an unexercised general power of appoint-
ment) will be recoverable from the trustees or owners of the pro-
perty (sect. 9 (4), p. 58, infra, 25 Hansard, 4th Ser., p. 1529),
or may be raised by the executor by sale or mortgage of the
j)roperty itself (sect. 9 (5), p. 58, infra).

May pay. There is no obligation on the executor to pay the
duty on any other property except the deceased's free personalty
(as defined above) ; but he may pay the duty, (a) upon any other
property which by virtue of any testamentary disposition of the
deceased is under his control [e.g. real estate devised to him in
trust or charged with debts) ; (b) upon any other property not
under his control {e.g. settled property, or real estate not devised
to him or charged with debts) ; but in this case only at the
request of the persons accountable for the duty.

If the executor pays the duty out of general assets in his
hands, he may recover the amount paid from the trustees or
owners of the property (sect. 9 (4), p. 58, infra) ; or he may
raise the amount of the duty, either before or after he actually
pays it, by sale or mortgage of the property (sect. 9 (5), p. 58,
infra).

Under the control of the executor. See last note.

Persons accountable for the duty. Several persons may be
accountable for the duty on the same property'', e.g. a beneficiary
under a settlement, and also the trustees of the settlement.

57 & 58 Vict. c. 30. 31

It is not clear whether in such a case it is necessary that all § 6.

the persons accountable should request the executor to pay the "

duty.

(3.) Where the executor does not know the amount
or value of any property which has passed on the death,
he may state in the Inland Eevenue affidavit that such
property exists but he does not know the amount or
value thereof, and that he undertakes, as soon as the
amount and value are ascertained, to bring in an
account thereof, and to pay both the duty for which he
is or may be liable, and any further duty payable by
reason thereof for which he is or may be liable in
respect of the other property mentioned in the affidavit.

(4.) Estate duty, so far as not paid by the executor,
shall be collected upon an account setting forth the par-
ticulars of the property, and delivered to the Commis-
sioners within six months after the death by the person
accountable for the duty, or within such further time
as the Commissioners may allow.

(5.) Every estate shall include all income accrued
upon the property included therein down to and out-
standing at the date of the death of the deceased.

Property. I.e. any property passing at the death, whether
the executor is liable for the duty on it or not.

Undertakes ... to bring in an account. This provi-
sion is supplemental to sect. 8 (3), (p. 48, infra), under which
the executor is bound to annex to the Inland Eevenue affidavit
accounts of all the property passing at the death and liable to
estate duty. It is by means of these accounts that the rate of
the estate duty is in the first instance determined (sect. 8 (7),
p. 52, infra).

Both the duty for which he is or may be liable and, &c.

I.e. if the property in question is property for the duty on which
the executor is accountable.

Any further duty. Upon the value of the property in ques-
tion being aggregated with that of the other property mentioned
in the affidavit, it may turn out that duty on such other pro-
perty has been paid at too low a rate. The executor in such a
case undertakes to pay the balance of the duty payable on the
property, for the duty on which he is accountable.

<i2 DEATH DUTIES (eNGLAND).

§ 6* Accoimt. This account is to be in such form, and shall

contain such particulars, as the Commissioners may prescribe
(sect. 8 (14), p. 54, infra). If required by the Commissioners,
it is to be in duplicate, and it must be verified on oath, and by
the production of books and documents, in the manner pre-
scribed by the Commissioners (sect. 8 (14), p. 54, infra). There
will, it would appear, be two accoimts delivered of property,
the duty on which is not paid by the executor, — one annexed to
the executor's Inland Eevenue affidavit (sect. 8 (3), p. 48,
infra), and the other delivered by the person accountable for
the duty.

Within six months. The duty becomes due on the delivery
of the account, or the expiration of six months from the death,
whichever first happens (sub-sect. (7), infra). In the case of
real property the duty may be i)aid by instalments as provided
by sub-sect. (8), infra.

Person accountable for the duty. See sect. 8 (4), (p. 49,

infra).

Shall include all income, &c. All income, whether arising
from settled or unsettled property, outstanding at the death of
the deceased, is made liable to estate duty, as it was, before the
Act, liable to Probate duty. Such income will be apportioned
under the Apportionment Act, 1870 (33 & 34 Yict. c. 35), and
will, it is presumed, form part of the general personal estate
of the deceased.

(6.) Interest at the rate of three per cent, per annum
on the estate duty shall be paid from the date of the
death up to the date of the delivery of the Inland
Bevenue affidavit or account, or the expiration of six
months after the death, whichever first happens, and
shall form part of the estate duty.

(7.) The duty which is to be collected upon an Inland
Eevenue affidavit or account shall be due on the delivery
thereof, or on the expiration of six months from the
death, whichever first happens.

The estate duty is calculated as at the death of the deceased ;
interest upon the duty is then calculated for the period inter-
vening between the death and the delivery of the Inland Eevenue
affidavit or account, or the expiration of six months from the
death, whichever first happens. The sum so arrived at is treated
as the estate duty, and carries interest, as provided by sect. 8 (10)
(p. 53, infra), from the time at which the duty becomes due
[i.e., the delivery of the affidavit or account, or the expiration
of six months from the death, whichever first happens ; see the
next sub-section).

■ 57 & 58 Vict. c. 30. 33

Interest. By sect. 16 (5), (p. 72, infra), if the fixed duty of § 6.

305., or oOs. (being the duty payable where the gross value of
the real and personal estate of the deceased liable to estate duty,
exclusive of property settled otherwise than by his will, does not
exceed 300?. or oOOl., as the case may be) is paid within twelve
months after the death, interest is not payable on the duty.

(8.) Provided that the duty due upon an account of
real property may, at the option of the person delivering
the account, be paid by eight equal yearly instalments,
or sixteen half-yearly instalments, with interest at the
rate of three per cent, per annum from the date at
which the first instalment is due, less income tax, and
the first instalment shall be due at the expiration of
twelve months from the death, and the interest on the
unpaid portion of the duty shall be added to each ,
instalment and paid accordingly ; but the duty for the
time being unpaid, with such interest to the date of
payment, may be paid at any time, and in case the pro-
perty is sold, shall be paid on completion of the sale,
and if not so paid shall be duty in arrear.

TJpon an account of real property. It is presumed that in
cases of payment by instalments under this section, the pro-
visions of sub-sect. (6), supra, apply, and that interest on the
duty at three per cent, for the period intervening between the
death and the delivery of the account, or the expiration of six
months from the death (whichever first happens), is added to, and
forms part of, the estate duty.

At the option, &C. The duty may, in the case of real pro-
perty, be paid in the same way as on personalty (sub-sect. (4),
supra), or by instalments.

At which the first instalment is due. /. e., twelve months
after the death.

Less income tax. I-e., the income tax on the interest.
And the interest on the unpaid portion, &c. These words

might be taken to imply that if any instalment and interest was
in arrear, interest would be payable on such instalment and
interest. Tt is, however, thought that it is not intended to charge
interest on unpaid interest, but only on the duty for the time
being unpaid.

The instalments may be put an end to (a) voluntarily, by
payment of duty and interest up to date ; (b) compulsorily, by
the sale of the property, when the duty and interest up to date
must be paid on the completion of the sale.

34 DEATH DUTIES (eNGLANd).

§ 6. Shall be paid on completion. Thougli a land fide purchaser

' without notice is exempted from personal liability for duty

(sect. 8 (18), p. 55, infra), and the property in his hands is
exonerated from any charge for duty (sect. 9 (1), p. 56, infra),
a purchaser should, if he has notice that the duty was payable
in instalments, insist upon seeing that the provisions of this sub-
section are carried out. (See, however, sect. 8 (2), p. 47, infra.)
It is a question of some doubt whether a purchaser should, in
the case of the abstract of title showing a recent death, inquire
whether the duty on that death was payable by instalments.
(As to this, cp*. Re Ford and Hill, 10 Ch. D. 365 ; and see notes
on sect. 8 (18), p. 55, infra, and sect. 9 (1), p. 56, infra.)

Shall be duty in arrear. I.e., the unpaid duty and interest
up to the date of completion of the sale. This amount will
carry interest under sect. 8 (10), (p. 53, infra).

Value of 7 — n\ jj^ determining the value of an estate for the

property. ^ ^ ®

purpose of estate duty allowance shall be made for
reasonable funeral expenses and for debts and incum-
brances ; but an allowance shall not be made —

(a) for debts incurred by the deceased, or incum-

brances created by a disposition made by the
deceased, unless such debts or incumbrances were
incurred or created bond fide for full considera-
tion in money or money's worth wholly for the
deceased's own use and benefit and take effect
out of his interest, nor

(b) for any debt in respect whereof there is a right

to reimbursement from any other estate or
person, unless such reimbursement cannot be
obtained, nor

charged upon different portions of the estate ;
and any debt or incumbrance for which an allowance is
made shall be deducted from the value of the land or
other subjects of property liable thereto.

In determining the value of an estate for the purpose of
estate duty allowance shall be made. By The Customs and
Inland Revenue Act, 1881, sect. 28, a power to deduct debts
and funeral expenses was given only where the deceased was

Subject to the provisions of

67 & 58 Vict. c. 30. 35

sub-sect. (2) infra, with regard to the allowance of debts due to § *7.

creditors resident out of the United Kingdom, the section under — '

consideration is general, and appears to apply to all estates liable
to duty whether passing on the death of a person domiciled in
the United Kingdom or not. Thus, in the case of a domiciled
foreigner an allowance can, it is thought, be made for debts due
to creditors resident in the United Kingdom, and for debts or
incumbrances charged on his property within the United King-
dom, and, it would seem, for debts due to creditors resident
abroad but contracted to be paid in the United Kingdom.
Allowance cannot be made for incumbrances charged on pro-
perty belonging to a domiciled foreigner situate abroad, such
property not being liable to estate duty (see sect. 2 (2), p. 14,
supra, and sub-sect. (2), infra). Incumbrances upon property
situate abroad but liable to estate duty can, it is thought, be
deducted from the value of that property.

Reasonable faneral expenses. I.e., the usual necessary ex-
penses of burying the deceased in a manner suitable to his position
in life and his means generally. (See Williams on Executors,
9th ed., i3p. 839 et seq.) Such expenses do not include expenses
incurred in embalming the body, bringing it home from abroad,
erecting a tomb or monument, or putting the family or servants
into mourning. (See Williams on Executors, cited supra;
Johnso7i V. Baker, 2 Oar. & Pa. 207 ; Bridge v. Broiun, 2 Yo. & Coll.
C. C. 181.)

Debts. As to debts due to creditors resident abroad, see sub-
sect. (2), infra; and as to debts due from a person domiciled
abroad to creditors resident in England, see the first note to this
section. Debts will be deducted from the property of the
deceased liable thereto in the due course of administration.

Incumbrances. All incumbrances (including, of course,
ancestral incumbrances) can, subject to the provisions of sub-
clause (a), be deducted from the property liable thereto. As to
incumbrances charged on property abroad liable to duty, vide
supra. Incumbrances include mortgages and terminable charges
(sect. 22 (1), (k), p. 84, infra) ; in the case of the latter, a
rateable part of the duty may in many instances be thrown on
to the charge (see note on sect. 5 (2), p. 25, supra, and sect. 41
(1), p. 67, infra).

An allowance shall not be made. Under the Customs and
Inland Eevenue Act, 1881, sect. 28, no deduction could be made
for ' ' voluntary debts expressed to be payable on the death of
the deceased, or payable under any instrument which shall not
have been hojid fide delivered to the donee thereof three months
before the death of the deceased." Debts contracted in con-
sideration of marriage could therefore be deducted. Under this
Act, however, no deduction can be made in respect of debts or
incumbrances incurred or created in consideration of marriage.

Examples : —

(i) A. , upon his daughter's marriage, covenants to pay 2,000?.

36 ' DEATH DUTIES (ENGLAND ).

§ 7. to the trustees of her settlement -within, six months of

his death. The 2,000?. cannot on A.'s death be deducted

from A.'s general estate,
(ii) A., upon his daughter's marriage, charges Whiteacre
with the payment on his death of 2,000Z. to the trustees
of his daughter's settlement. The 2,000L cannot on
A.'s death be deducted from the value of Whiteacre.
By sub-sect. (10) (p. 45, infra), the same property cannot be
aggregated or estate duty paid in respect thereof more than once
on the same death.

In each, therefore, of the two cases above given the duty on
the 2,000/. will be paid as part of the duty — in the one case on
A.'s general estate, and in the other case on Whiteacre. No
further duty will be paid on the 2,000?. by reason of its passing
to the trustees of the daughter's settlement, but the trustees will
have to refund a rateable part of the dutj^ to the person paying
the duty on the whole property (sect. 14 (1), p. 67, infra ; and
see note on sect. 5 (2), p. 25, supra).

For full consideration in money or money's worth. These
words will not, it is thought, be unduly strained. " Full con-
sideration" means full consideration at the time the debt was
incurred or incumbrance created. Thus in many cases a sum
presently paid to a borrower would be full consideration for a
considerably greater sum, payable on the death of the borrower.
The case of a charge given upon property for partial considera-
tion would, in certain cases, fall within sect. 3 (2) (p. 16, supra).
But it is submitted that, in any case, a pro tanto allowance
would be made in respect of debts and incumbrances incurred
and created for partial consideration. As to " money or money's
worth," see note on sect. 3 (1), (p. 17, supra).

Wholly for the deceased's own use or benefit. These
words were, no doubt, inserted to meet the case of the deceased
having made himself liable iov, or charged his property to
secure, the debt of another person. In such a case, the debt or
incuml)rance may have been incurred or created for full con-
sideration ; but as the deceased's estate has not had the benefit
of the consideration, no deduction will be allowed in respect of
the debt or incumbrance. The words will, however, cause diffi-
culty in cases falling under the next sub -clause.

And take effect out of Ms interest. By sect. 22 (2) (b) (p. 86,

infra) a disposition taking effect out of the interest of the de-
ceased shall be deemed to have been made by him, whether the
concurrence of any other person was or was not required. An
instance of such a disposition would be a mortgage created by a
tenant in tail in remainder, who disentails with the concurrence
of the tenant for life, to secure money raised by the former.
(Cf., Attorney -General v. Sibthorp, 3 Hurlst. & Norm. 424.)

As the incumbrance must " take effect." no allowance can, it
is thought, be made for a contingent incumbrance. The mean-
ing of the words " out of his interest" is not clear. Could, for
instance, a mortgage created by a tenant for life on the inherit-

57 & 58 Vict. c. 30. 37

ance of the property under a power in tlie settlement to secure § "^^ _

money raised for his benefit, or a mortgage created by two ^~~ ~ —

limited owners for the benefit of one of them, by the exercise of
a joint general power of appointment, be said "to take effect
out of the interest" of the person for whose benefit the mortgage
was made ?

Nor for any debt in respect whereof there is a right to
reimbursement from any other estate or person. These
words are taken, with slight alterations, from sect. 28 of the
Customs and Inland Revenue Act, 1881, and the debts re-
ferred to are debts for which the deceased's estate is not
primarily liable {e.g. a partnership debt), or for which the de-
ceased was surety only. The word "estate" is used in this
passage in its ordinary sense, and not in the technical sense in
which it is used in other parts of the Act. It is doubtful whether,
having regard to the words "for the deceased's own use or
benefit " in sub-clause (a), debts which would otherwise fall
within this sub-clause will be allowed to be deducted ; e.g. a
debt incurred by the deceased as surety for another person,
where, so far as the deceased was concerned, the transaction was
without consideration, or a partnership debt where the considera-
tion passed to the partnership. The word "incumbrance" is
not used in this sub-clause, but it is thought that a charge given
by the deceased on his property as surety (without incurring
any further personal liability) would be on the same footing as
a suretyship debt.

More than once for the same, &c.

Exam'pJe. — Whiteacre is mortgaged for 2,000?. and the deeds
of Blackacre are deposited by way of collateral security. The
2,000?. can be deducted from the value of Whiteacre, but (unless
Whiteacre is worth less than 2,000/.) not from Blackacre.

Any debt or incumbrance . . . shall be deducted.

See notes on "Debts" and "Incumbrances" at the beginning of
the section.

A return of duty will be made by the Commissioners if any
debts or incumbrances have not been allowed which ought to
have been allowed (sect. 8 (12), p. 53, infra) ; and if a certificate
has been granted under sect. 9 (2) (p. 56, infra) the return will
be made to the person producing the certificate (sect. 9 (3), p. 57,
infra). Any decision of the Commissioners as to repayment of
duty is subject to appeal to the High Court. (Sect. 10 (1),
p. 59, infra.)

(2.) An allowance shall not be made in tlie first
instance for debts due from the deceased to persons resi-
dent out of the United Kingdom, (unless contracted to
be paid in the United Kingdom, or charged on property
situate within the United Kingdom), except out of the
value of any personal property of the deceased situate

58 DEATH DUTIES (eNGLANd).

§ *7. out of the United Kingdom in respect of which estate
duty is paid ; and there shall be no repayment of estate
duty in respect of any such debts, except to the extent
to which it is shown to the satisfaction of the Commis-
sioners, that the personal property of the deceased
situate in the foreign country or British Possession in
which the person to whom such debts are due resides, is
insufficient for their payment.

Debts due from the deceased to persons resident out of
the United Kingdom. The rules as to these debts are as
follows : —

(i) If contracted to be paid in the United Kingdom, or
charged upon property situate within the United King-
dom, such debts will be deducted in the one case from
the value of the assets within the United Kingdom
liable thereto in a due course of administration, and in
the other case from the value of the property specific-
ally charged. This rule appears to apply whether the
deceased was domiciled in the United Kingdom or not.

(ii) If not contracted to be paid in the United Kingdom or
charged upon property situate within the United King-
dom, the debts in question will, in the first instance, be
deducted from the value of the deceased's free personal
property situate abroad, but in this case the deceased
must have been domiciled in the United Kingdom.
(See sect. 2 (2), p. 14, supra.) It would appear that
the deduction need not necessarily be made as against
personnl property situate in the country in which the
foreign creditor resides. Thus, if the deceased, pos-
sessing 10,000?. free personalty in Eussia, owes 5,000L
in France, the executor is allowed to deduct the French
debt of 5,000?. from the Russian personalty, and is
required only to pay duty on the balance.

(iii) If the deceased was domiciled in the United Kingdom,
and the foreign personalty (if any) does not equal or
exceed the foreign debts, or if the deceased was domi-
ciled abroad, no allowance is made in the first instance
as against the property in the United Kingdom, in
respect of the debts in question. If, however, the
Commissioners are satisfied that the deceased's person-
alty in the country, where the creditor resides, is to any
extent insufficient for payment of his debt, a return of
duty will to that extent be made in respect of the debt.
(See sects. 8 (12), 9 (8), pp. 53 & 57, infra ; and as to
appeal, see sect. 10 (1), p. 59, infra.)

Any personal property of the deceased situate out of the
United Kingdom, &c. See sect. 2 (2), p. 14, supra.

57 & 58 Vict. c. 30. 39

(3.) Where the Commissioners are satisfied that any § 7.
additional expense in administering or in realising pro-
perty has been incurred by reason of the property being
situate out of the United Kingdom, they may make an
allowance from the value of the property on account of
such expense not exceeding in any case five per cent, on
the value of the property.

(4.) Where any property passing on the death of the
deceased is situate in a foreign country, and the Com-
missioners are satisfied that by reason of such death any
duty is payable in that foreign country in respect of
that property, they shall make an allowance of the
amount of that duty from the value of the property.

Foreign country or British Possession. Throughout these
notes a person domiciled in a foreign country or British Pos-
session is spoken of as domiciled abroad or as a domiciled
foreigner, and a creditor resident in a foreign country or British
Possession is spoken of as a foreign creditor or as resident
abroad.

Situate out of the United Kingdom. I.e., whether in a

foreign country or a British Possession. The property in ques-
tion is personalty abroad belonging to the deceased, or in which
he had an interest, he being domiciled in the United Kingdom.
In most cases such property is realised on the deceased's death,
at very considerable expense.

Foreign country. The phrase appears to be used throughout
the Act in contradistinction to "British Possession." Under
sect. 20 (p. 77, infra), the amount of death duty payable in a
British Possession, to which that section is applied by an Order
of the Queen in Council, in respect of property situate in such
British Possession, and liable to estate duty under this Act, may
be deducted from the estate duty. That section can, however,
only be applied to a British Possession (a) if by the law of such
possession no duty is leviable in respect of property situate in
the United Kingdom when passing on death ; or (b) if the law
of such possession, as respects any death duty, is to the like
effect as the provisions of sect. 20. (See sect. 20 (3), p. 78, -infra.)
It would appear that the benefit of sect. 7 (4) should extend to
the case of a British Possession to which sect. 20 does not apply.

(5.) The principal value of any property shall be
estimated to be the price which, in the opinion of the
Commissioners, such property would fetch if sold in the
open market at the time of the death of the deceased ;

40 DEATH DUTIES (eNGLAND).

§ ^' Provided that, in the case of any agricultural pro-

perty, where no part of the principal value is due to the
expectation of an increased income from such property,
the principal value shall not exceed twenty-five times
the annual value as assessed under Schedule (A) of the
Income Tax Acts, after making such deductions as have
not been allowed in that assessment and are allowed
under the Succession Duty Act, 1853, and making a
deduction for expenses of management not exceeding
five per cent, of the annual value so assessed.

The principal value. I.e., after making the deductions
allowed under the preceding sub-sections.

Any property. The general working rule is that the market
value of the property at the time of the death is to be taken.
The Commissioners are (except in the case of agricultural property
not having a prospective value) to ascertain such value in such
manner and by such means as they think fit, and are given certain
powers as to insi:)ection of the property. (Sub-sect. (8),
rufra.) The reasonable costs of any valuation required by the
Commissioners are to be borne by them. As the existing law
and practice with regard to anj^ of the death duties are, for the
purposes of the collection and recovery of estate duty, embodied
in this Act, it is thought that, at any rate for the purposes of
•probate, the Commissioners will in the first instance accept the
value put on the property by the executor or other persons
accountable for the duty. (25 Hansard, 4th Ser., p. 881.)

As to appeals from valuations of the Commissioners, see
sect. 10, (p. 59, infra). If duty has been overpaid owing to
over- valuation by the Commissioners, interest at three per cent,
is paid on the excess of duty. (Sect. 8 (12), p. 53, infra.)

Agricultural property is defined by sect. 22 (1) (g) (p. 83,
infra), to mean agricultural land, pasture, and woodland, and
is also deemed to include such cottages, farm buildings, farm
houses, and mansion houses (together with the lands occupied
therewith) as are of a character appropriate to the property.

Where no part of the principal value, &c. Property which
literally falls within the definition given in sect. 22 (1) (g) may
have what is known as a prospective value. In such a case this
proviso does not apply, and the value of the property must be
ascertained in the usual way. Anomalies like those which
formerly occurred under the Succession Duty Act, 1853 (see
The Attorney -General v. Lord Sefton, 2 Hurlst. & Colt. 362) will
not, therefore, occur under this Act.

Shall not exceed twenty-five times. This is the maximum.

57 & 58 Vict. c. 30. 41

Of course the Commissioners may put the property at a less § 7.
number of years purchase. '- •" — ',-

The annual value as assessed under Schedule (A) of the
Income Tax Acts. Under the Income Tax Act, 1842, s. 60,
the rule for assessing the annual value of property, chargeable
under Schedule (A), is as follows : —

"The annual value of lands, tenements, hereditaments, or
heritages, charged under Schedule (A), shall be understood to be
the rent by the year at which the same are let at rack-rent, if the
amount of such rent shall have been fixed by agreement, com-
mencing within the period of seven years preceding the fifth day
of April next before the time of making the assessment ; but if
the same are not so let at rack-rent, then at the rack-rent at
which the same are worth to be let by the year."

The valuation of property for the purpose of Schedule (A) is
obtained as a rule from the gross amount of assessment to the
local rates. The particular deductions and allowances made in
respect of agricultural property under Schedule (A), consist of
house and land tax, drainage, fencing, and embankment rates,
and the outlay, on the average of the preceding twenty-one years,
upon erecting and maintaining sea walls (16 & 17 Vict. c. 34,
s. 37), and also all rates or taxes which fall by law on the tenant,
but are paid by the owner {e.g., poor, highway, school board,
water, district, sanitary, borough, and general rates).

Deductions as have not been . . . and are allowed under
the Succession Duty Act, 1853. I.e., for necessary outgoings
(sect. 22) — e.g., chief rents; fire insurance ; repairs executed or
paid for by the owner (for buildings, &c. on farms generally
5 to 1^ per cent., for ordinary house proj)erty generally 10 per
cent., for cottage property 12 to 15 per cent.); tithes, and tithe
rent -charge; — (sect. 28) fines, fees, and other payments incident
to tenure, and also consideration paid for compulsory enfran-
chisement. An allowance for unpaid instalments of succession
duty would, it is thought, be made under sub- sect. (1).

Incumbrances for the purpose of this Act are dealt with in sub-
sect. (1), supra ; it is thought, therefore, that sect. 34 of the Suc-
cession Duty Act, 1853, does not, speaking generally, apply.
But qiicere whether an allowance might not be made for moneys
laid out by a successor in substantial repairs or permanent im-
provement of the property previously to coming into possession.

It is not clear how "woodland" (which is included in the
definition of "agricultural property" in sect. 22 (1) (g), p. 83,
infra) will be dealt with, or how far the value of growing timber
will be taken into account in ascertaining the value of the pro-
perty. Under sect. 23 of the Succession Duty Act, 1853, timber
(not being coppice or underwood) is not taxable until it is
actually severed from the land. When cut down and sold (if
the net moneys in any one year exceed 10/.) succession duty is
charged upon the successor's interest in the net moneys, after
deducting all necessary outgoings— r.e., the expenses of selling,
felling, and drawing out the timber, of restoring the fences,

42 DEATH DUTIES (eNGLANd).

§ 7. ditclies, roads, and gates, injured by the felling and drawing

*'-'■■■' — out of such timber, in so far as these expenses are borne by the

vendor; also the expenses of the year in which the sale takes
place in connection with the growth of the timber actually sold.
The provisions of that section not being in any way incorpo-
rated into this Act, it is thought that if timber on property
passing on death is subsequently cut down and sold the proceeds
of sale will not be charged with any estate duty in addition to
that paid on the death. In the case of " timber estates" (such
as the estate referred to in Dashivood y. Magniac, (1891) 3 Ch.
306), an annual income is derived from the timber, and it is sub-
mitted that in such a case the allowances mentioned in sect. 23
of the Succession Duty Act should be made.

Expenses of management. This is new. Under the Suc-
cession Duty Act no deduction can be made for expenses of
management.

Not exceeding five per cent. This is the maximum. The
Commissioners will, no doubt, determine the percentage to be
allowed, having regard to the average amount of the expenses
of management. For the purpose of estimating the duty in the
first instance, the Commissioners will, it is thought, accept a
valuation which is prima facie in accordance with this proviso.
(See notes on sect. 6 (2), p. 28, supra, and note on this sub-
section " Any proi)erty " supra.)

(6.) Where an estate includes an interest in expect-
ancy, estate duty in respect of that interest shall be paid,
at the option of the person accountable for the duty,
either with the duty in respect of the rest of the estate
or when the interest falls into possession, and if the duty
is not paid with the estate duty in respect of the rest of
the estate, then —

(a) for the purpose of determining the rate of estate
duty in respect of the rest of the estate the value
of the interest shall be its value at the date of
the death of the deceased ; and

(b) the rate of estate duty in respect of the interest
when it falls into possession shall be calculated
according to its value when it falls into posses-
sion, together with the value of the rest of the
estate as previously ascertained.

An interest in expectancy. This expression includes (sect. 22
(1) (j), p. 83, infra) an estate in remainder or reversion, and every
other future interest, whether vested or contingent ; but docs not

57 & 58 Vict. c. 30. 43

include reversions expectant upon tlio determination of leases § 7.

(*. e. , leases for years). If an interest in expectancy passes on ~ *

the death of any person, such j)erson must have been competent
to dispose of the interest. No question can arise therefore under
sect. 5 (3), (p. 26, supra). Under this section the duty on an
interest in expectancy can be paid either on the death of the
deceased upon the value of the interest at that time, or when
the interest falls into possession. Sub-clauses (a) and (b) pro-
vide how the rate of duty payable on the estate, other than the
interest in expectancy, and on the interest when it falls into
possession, is to be ascertained.

Example. — Whiteacre is settled on A. for life, with remainder
to B. in fee. B. predeceases A., devising all his property to C.
Whiteacre is worth 10,000?. as an estate in fee ; as an estate in
remainder expectant on the determination of A's life interest,
it is worth 8,000?. The rest of B.'s property is worth 16,000?.
0. elects to pay the duty on Whiteacre on A.'s death. In order
to ascertain the rate of duty payable on the 16,000?., the present
value of Whiteacre— 8,000?.— must be added to the 16,000?.
The rate of duty payable on an estate worth the sum of these
two amounts (namely, 24,000?.) is 4 percent. Duty at this rate
is paid then on the 16,000?. On A.'s death, the duty on White-
acre, which became payable on B.'s death, but has been post-
poned, must be paid. The value of Whiteacre, which is now in
possession, is 10,000? : this sum, and 16,000?., which was the
value of the rest of the estate, added together make 26,000?.,
the rate of duty for which is 4^ per cent. Duty at this rate
must therefore be paid by C. upon AVhiteacre.

This example can be elaborated to any extent.

If the interest in expectancy is a reversion or remainder
expectant upon some death, duty will (if otherwise paj'able)
have of course to be paid on that death in addition to the duty,
the payment of which has been postponed.

Example. — Whiteacre is settled by A. on himself for life, with
remainder to B. in fee. B. predeceases A., and leaves White-
acre to C. C. elects to pay the duty on A.'s death when the
estate falls into possession, i.e., when A. dies. On A.'s death
C. will have to pay the duty payable on A.'s death, as well as
the postponed duty which became payable on B.'s death.

See, too, note on sect. 5 (2), (p. 25, supra).

(7.) The value of the benefit accruing or arising
from the cesser of an interest ceasing on the death of
the deceased shall —

(a) if the interest extended to the whole income of

the property, he the principal value of that pro-
perty ; and

(b) if the interest extended to less than the whole
income of the property, be the principal value of

44 DEATH DUTIES (eNGLAND).

_ § 'V an addition to the property equal to the income

to which the interest extended.

The value of the benefit accruing or arising from the
cesser of an interest. This sub-section deals with cases
falling under sect. 2 (1) (b), (p. 6, supra), namely, life estates
and interests, and annuities charged on and issuing out of pro-
perty. (See the examples given in the notes to sect. 2(1) (b),
*' To the extent to which," -p. 7, supra.)

(8.) Subject to the provisions of this Act, the value
of any property for the purpose of estate duty shall be
ascertained by the Commissioners in such manner and
by such means as they think fit, and, if they authorize
, a person to inspect any property and report to them the

value thereof for the purposes of this Act, the person
having the custody or possession of that property shall
permit the person so authorized to inspect it at such
reasonable times as the Commissioners consider neces-
sary.

(9.) Where the Commissioners require a valuation to
be made by a person named by them, the reasonable
costs of such valuation shall be defrayed by the Com-
missioners.

Subject to the provisions of tkis Act. I.e., subject to the
general working rule laid down in sub- section (o), supra, and
the provisions as to deductions, &c. contained in the preceding
sub-sections.

To inspect any property. This is new.

Valuation, At the present time no valuation is made by the
Commissioners for the purpose of Probate duty or Succession
dutj'. They have the power to require a valuation to be made
in the case of legacies in specie. (See 36 Geo. 3, c. 52, s. 22.)
By sect. 8, (8) (p. 52, infra), they are, if required, to certify the
amount of valuation accepted by them for any class or descrip-
tion of i^roperty forming part of the estate.

The reasonable costs of such valuation. The Commis-
sioners will, it is thought, pay the costs of a valuation required
by them, so far as such costs are not unduly increased by the
conduct of the person accountable for the duty.

In the case of a valuation of legacies in specie, the costs are
borne by the legatee.

57 & 58 Vict. c. 30. 45

(10.) Property passing on any death shall not be § 7.
aggregated more than once, nor shall estate duty in
respect thereof be more than once levied on the same
death.

Shall not be aggregated more than once ... on the same
death. See the example given in the notes to sub-sect (1),
supra.

8. — (1.) The existing law and practice relating to Supplemental
any of the duties now leviable on or with reference to to^coUectLn^
death shall, subject to the provisions of this Act, and repaymektof
so far as the same are applicable, apply for the purposes ^^^ exemption
of the collection, recovery, and repayment of estate duty, duty.
and for the exemption of the property of common sea-
men marines or soldiers who are slain or die in the
service of Her Majesty, and for the purpose of pay-
ment of sums under one hundred pounds without
requiring representation, as if such law and practice
were in terms made applicable to this Part of this Act.

The existing law and practice, &c. See the notes to

sects. 6 (2), 7 (5), (pp. 29 & 40, supra).

Recovery. The recovery of the duty will be enforced by a
■writ of summons for an account and payment under 28 & 29
Yict. c. 104 ; and if the person summoned fails to appear and
show cause why he has made default, a writ of attachment will
be issued. (See Be Coidson, Times, 21st July, 1894.) An action
to enforce the charge can also, it would seem, be brought in the
case of property upon which the duty is charged by sect. 9 (1),
(p. 56, infra). In either case the Court can appoint a receiver
and order a sale of the property. (Sub-sect. 13, p. 53, infra.)

Under the Succession Duty Act, 1853, s. 44, persons account-
able for duty are made debtors to her Majesty.

For the exemption of the property of common seamen,

&C. The effects of any common seaman, marine, or soldier
dying in the service of the Queen are exempted from Probate
duty. (55 Geo. 3, c. 184, Sch., Part 3.) All property belonging
to such persons is exempted from estate duty.

For the purpose of payment of sums under 100/. without
requiring representation. The followin-^ appear to be the
cases hero referred to : —

(1) Sums in friendly societies not exceeding lOOl. (The Friendly
Societies Act, 1875, s. 15 (4) ) may be paid to nominees

DEATH DUTIES (eNGLANd).

§8.

of a deceased member without administration being re-
quired.

(2) Under 26 & 27 Yict. c. 57 (The Eegimental Debts Act),

representation is not required where the surplus of the
personal effects of any officer or soldier dying on service
after payment of the preferential charges mentioned in
the Act does not exceed 100?.

(3) Under 28 & 29 Vict. c. Ill, s. 6 (The Navy and Marines

(Property of Deceased) Act) representation may be dis-
pensed with where the amount of pay or pension standing
to the credit at the time of death of any officer, seaman, or
marine, or any civil officer in the books of the Admiralty,
does not exceed 100?.

(4) Under 31 & 32 Yict. c. 90, representation may be dis-

pensed with where the arrears of civil pay or pension due
at the time of death to any civil servant does not exceed
100/. (sect. 1); where civil and military allowances charge-
able to army votes and army prize-money do not exceed
100/. (sect. 2.)

(5) Under the Savings Bank Act, 1887, s. 3 (2), deposits in

savings banks not exceeding 100/. may be distributed

without probate or other proof of representation being

required.

Estate duty is apparently not payable (though it is not so stated

in terms) in any of the cases just given. Under the former law,

probate duty, for which estate duty is now substituted, would

not have been payable where no representation was required.

The expression "representation" means probate of a will or
letters of administration. (Sect. 22 (1), (c), p. 82, infra.)

Purchasers
and mort-
gagees ex-
empted from
liability to
succession,
duty after a
specified
period.

(2.) Sections twelve to fourteen of the Customs and
Inland Eevenue Act, 1889, and section forty-seven of
the Local Eegistration of Title (Ireland) Act, 1891,
shall apply as if estate duty were therein mentioned as
well as succession duty, and as if an account were not
settled wdthin the meaning of any of the above sections
until the time for the payment of the duty on such
account has arrived.

Sections 12 to 14 of the Customs and Inland Revenue Act,
1889. These sections run as follows : —

" 12 — (1.) Notwithstanding the forty-second section of the
Succession Duty Act, 1853, or any other provision contained in
that Act, real property, or any estate or interest therein, shall
not, as against a purchaser for valuable consideration, or a
mortgagee, remain charged with or liable to payment of any
sum for succession duty or duty hereinbefore imposed by this
part of this Act, after the expiration of six years from the date
of notice to the Commissioners of Inland Eevenue of the fact

57 & 58 Vict. c. 30. 47

that the successor, or any person in his right or on his behalf, § 8.

has become entitled in possession to his succession or to the re- ■

ceipt of the income and profits thereof, or from the date of the
first payment by such successor or person of any instalment or
part of the duty, in case the successor shall not have availed
himself of the option given to him by section twenty-two of the
Customs and Inland Eevenue Act, 1888, or after two years from
the time for the payment by such successor of the last instal-
ment or part of the dut}^, if he has availed himself of such
option ; or, in the absence of any such notice or payment, after
the expiration of twelve years from the happening of the event
(whether before or after the passing of this Act) which gave rise
to an immediate claim to such duty, or if such period of twelve
years expires within six years from the date of the passing of
this Act, then after the expiration of six years from the last-
mentioned date."

" (2.) The duty (if any) unpaid at the expiration of such period
of six years, or of twelve years or six years as the case may be,
shall be payable and paid by the successor or the persons men-
tioned as accountable in section forty-four of the said Act, other
than the purchaser or mortgagee, and shall become charged
substitutively upon any other estate or interest comprised in the
succession of the successor remaining vested in him, or in any
person in his right or on his behalf, other than the purchaser or
mortgagee, and in case of a mortgage upon the equity of
redemption."

"(3.) This section is not to lessen or affect any liability of
any successor or accountable person, other than the purchaser
or mortgagee, to payment of duty, whether out of money
received on any sale or mortgage, or otherwise ; but a purchaser
or mortgagee shall not, for the purpose of obtaining the exemp-
tion conferred by this section, be bound to see that the duty is
discharged out of the money or other consideration paid or
given as the consideration for the sale or mortgage."

"13 — (1.) Any person may cause an attested copy (which Power to
shall be exempt from stamp duty) of any document which deposit copies
. ti-tIp i. £ ^ ■ J t liOf documents

creates a liability for pajonent ot any succession duty, or duty ^^^ liability

hereinbefore imposed by this part of this Act, other than a to duty to
testamentary document admitted to probate, to be deposited cease after
with the Commissioners of Inland Eevenue at their principal specified
office in London, Edinburgh, or Dublin, as the case may require, penod.
and such copy shall be received at that office."

"(2.) The officer of the Commissioners receiving the copy
shall, on request of the person making the deposit, and either by
indorsement on the original document or otherwise, give a
receipt in writing under his hand for the copy."

" (3.) After a receipt has been given by an officer for a copy
of a document under this section, no person shall be liable for
payment of any duty under such document after the expiration
of six years from the date of notice to the Commissioners of the
fact which gives rise to an immediate claim to such duty."

" (4.) The costs of depositing a copy of a document and ob-
taining a receipt under this section shall be deemed costs duly
incurred by a trustee, executor, or administrator, or any other

DEATH DUTIES (eNGLANd).

§8.

Liability to
duty under
documents
admitted to
probate to
cease after a
specified
period.

person in the execution of His duties as trustee, executor, or
administrator, or otherwise, under the document."

" 14. No person shall, under a testamentary document ad-
mitted to probate, or under letters of administration, or under a
confirmation, be liable for payment of any legacy duty or suc-
cession duty, or duty hereinbefore imposed by this part of this
Act, after the expiration of six years from the date of the
settlement of the account in respect of which the duty is payable,
where such account was in all respects a full and true account
and contained all the facts material to be known by the Com-
missioners of Inland Eevenue for the ascertainment of the rate
and amount of duty; and no trustee, executor, or administrator
shall, after the expiration of such six years, be liable to such
duty if it is proved to the satisfaction of the Commissioners that
the account rendered was correct to the best of his knowledge,
information, and belief."

As if estate duty were therein mentioned. It would

appear that the term " succession," in the sections from the Act
of 1889 above given, would, in the case of estate duty, mean
" property passing on the death of the deceased," and "suc-
cessor" "any person to whom such property passed for a
beneficial interest in possession."

And as if an account were not settled, &c. See sect. 14 of

the Act of 1889 above given. That section, as it stands, is only
appropriate to cases in which duty is payable in a lump sum.
Inasmuch, however, as under sect. 6 (8), (p. 33, supra), estate
duty may, in the case of real estate, be paid in instalments, a
modification in sect. 14 of the Act of 1889 has to be made in order
to make it applicable when the duty is paid in instalments. The
effect of the sub- section under consideration is to release trustees,
executors, &c., to whom the provisions of sect. 14 of the Act of
1889 apply, after the expiration of six years from the payment
of the duty when it is payable in a lump sum, and after the
expiration of six years from the last payment when it is payable
in instalments.

These provisions are supplemental to the provisions as to
purchasers for value without notice, contained in sub-sect. 18,
infra, and sect. 9 (1), (p. 56, infra). See the notes on those
provisions.

(3.) The executor of the deceased shall, to the best of
his knowledge and belief, specify in appropriate ac-
counts annexed to the Inland Eevenue afifidavit all the
property in respect of which estate duty is payable
upon the death of the deceased, and shall be accountable
for the estate duty in respect of all personal property
wheresoever situate of which the deceased was competent

57 & 58 Vict. c. 30. 49

to dispose at his death, but shall not he liable for any § 8.
duty in excess of the assets which he has received as
executor, or might but for his own neglect or default
have received.

See the notes to sect. 6 (2), (p. 28, supra).

(4.) Where property passes on the death of the de-
ceased, and his executor is not accountable for the
estate duty in respect of such property, every person to
whom any property so passes for any beneficial interest
in possession, and also, to the extent of the property
actually received or disposed of by him, every trustee,
guardian, committee, or other person in whom any
interest in the property so passing or the management
thereof is at any time vested, and every person in whom
the same is vested in possession by alienation or other
derivative title shall be accountable for the estate duty
on the property, and shall, within the time required by
this Act or such later time as the Commissioners allow,
deliver to the Commissioners and verify, an account, to
the best of his knowledge and belief, of the property :
Provided that nothing in this section contained shall
render a person accountable for duty who acts merely as
agent or bailiff for another person in the management
of property.

Where property passes on the death of the deceased, and

his executor is not accountable. The property dealt with in
this sub-section includes all property, settled or unsettled,
passing on the deceased's death, except the deceased's free
personalty (whether situate within or without the United King-
dom) and personalty over which he had an unexercised power
of aiDpointment. Thus, persons taking from the executor pro-
perty of the description last referred to are safe. The persons
made accountable for duty under this sub-section are —

(1) Beneficiaries in possession {e.g., a tenant for life in pos-

session).

(2) Trustees, guardians, and committees.

F. E

50 DEATH DUTIES (eNGLAND).

§ 8. (3) Any other person in whom the property or the manage-

ment thereof is at any time vested.
(4) Volunteers taking by alienation or other derivative title,
and purchasers for value with notice. In this case the
alienation or purchase may have been made, or the
derivative title accrued, either before or after the death
on which the liability to duty arose ; there is in this
respect a difference from the Succession Duty Act,
1853, s. 44, under which purchasers who purchased
the successor's interest after it has fallen into possession
are not accountable for succession duty.

In case (1) the liability is apparently unlimited, and is not, it
would seem, restricted to the amount of assets received ; but in
cases (2) (3) and (4) it is limited to the amount of the property
actually received or disposed of by the person accountable. (See
sub-sect. (2), suj)ra, p. 46, as to the time within which estate
duty may be recovered in cases falling under that sub-section.)

The following persons are not accountable for estate duty —
(1) agents or bailiffs; (2) purchasers for value without notice.
(Sub-sect. (18), infra).

Shall be accountable. Persons accountable will be debtors
to her Majesty. (Sub-sect. (1), p. 45, supra, Succession Duty
Act, 1853, s. 44.) See sub-sect. (2), supra, as to the cesser of
liability in certain cases.

Within the time required. I.e., six months after the
death. (Sect. 6(4), p. 31, supra.) The property will as a rule
be specified in the executor's accounts (see sub-sect. (3) p. 48,
supra) , and the executor may (upon request if the property is not
under his control) pay the duty. (Sect. 6 (2), p. 28, supra.) It
is, however, thought that the account under this section must in
any case be delivered.

Verify. I.e., on oath and by the production of books and
documents in the manner prescribed by the Commissioners.
(Sub-sect. (14) infra.)

(5.) Every person accountable for estate duty, and
every person whom the Commissioners believe to have
taken possession of or administered any part of the
estate in respect of which duty is leviable on the death
of the deceased, or of the income of any part of such
estate, shall, to the best of his knowledge and belief, if
required by the Commissioners, deliver to them, and
verify, a statement of such particulars together with
such evidence as they require relating to any property
which they have reason to believe to form part of an

67 & 58 Vict. c. 30.

estate in respect of which estate duty is leviable on the § 8'
death of the deceased.

(6.) A person who wilfully fails to comply with any
of the foregoing provisions of this section shall he liable
to pay one hundred pounds, or a sum equal to double
the amount of the estate duty, if any, remaining unpaid
for which he is accountable, according as the Commis-
sioners elect : Provided that the Commissioners, or, in
any proceeding for the recovery of such penalty, the
Court, shall have power to reduce any such penalty.

This sub-section is subsidiary to the last.

Every person accountable. I.e., accountable for the estate
duty on aiiy property forming part of the estate in question, not
merely for the duty on the property with regard to which infor-
mation is sought.

Every person whom the Commissioners, &c. E.g., solici-
tors, bankers, mortgagees in possession, agents. These persons
are not necessarily accountable for the duty. An executor de
son tort is accountable for the duty on the personalty of which
the deceased was competent to dispose. (Sect. 22 (1) (d), p. 82,
infra.)

To the best of his knowledge and belief. There appears to
be no necessity for the persons above referred to go out of their
way to obtain the information sought.

Verify. See sub-sect. (14), infra.

A statement. See sub-sect. (14), infra.

Any property. If a person is accountable for the duty on,
or has taken possession of, &c., any part of an estate, he may be
called on to give information as to any other part of the estate.

Wilfully. No penalty is imposed in respect of any default
unless such default was wilful. (See sub-sect. (14), infra.)

Foregoing provisions. I.e.—

(1) Delivery of accounts by the executor. (Sub-sect. (3).)

(2) Delivery of accounts by persons accountable for the duty

in cases where tho executor is not so accountable.
(Sub-sect. (4).)

(3) Furnishing statement of particulars of property. (Sub-

sect. (5).)
By the Customs and Inland Revenue Act, 1881, s. 40, any
person who ought to obtain probate or letters of administration,
or deliver a further affidavit, but neglects to do so within the
period prescribed by law (see 55 Geo. 3, c. 184, s. 37), is made
liable to a penalty of double the amount of duty chargeable.
The provisions of the section referred to remain, it is thought,

52- DEATH DUTIES (eNGLAND).

§ 8. in force (see sub-sect. (1), supra), and are not superseded by the-

provisions of the sub-section under consideration.

The penalty imposed by this sub-section is payable in the
case of default under sub-sect. (14).

The acceptance by the Commissioners of duty and interest .
operates as a waiver of penalties. (31 & 32 Vict. c. 124, s. 9.)

Penalties under this Act will be recovered in the same way as
duty. (See note to sect. 8 (1), " Eecovery," p. 45, supra.)

(7.) Estate duty shall, in the first instance, be calcu-
lated at the appropriate rate according to the value of the ■
estate as set forth in the Inland Eevenue affidavit or
account delivered, but if afterwards, it appears that for
any reason too little duty has been paid, the additional
duty shall, unless a certificate of discharge has been
delivered under this Act, be payable, and be treated as
duty in arrear.

(8.) The Commissioners on application from a person
accountable for the duty on any property forming part
of an estate shall, where they consider that it can con*
veniently be done, certify the amount of the valuation'
accepted by them for any class or description of pro-
perty forming part of such estate.

(9.) Where the Commissioners are satisfied that the
estate duty leviable in respect of any property cannot
without excessive sacrifice be raised at once, they may
allow payment to be postponed for such period, to such
extent, and on payment of such interest not exceeding
four per cent, or any higher interest yielded by the pro-
perty, and on such terms, as the Commissioners think
fit.

Estate duty. See notes to sect. 6 (2), (p. 29, supra).
Unless a certificate of discharge. I.e., under sects. 11 or 12

(pp. 62, 6o, infra).

Duty in arrear. This will carry interest at 4 per cent»
(Sub-sect. (10), infra.)

Any class. An estate may consist of different classes of pro-
perty, e.(j., building property and agricultural property. It
will in many cases be convenient to know the exact value put
by the Commissioners on any particular item of property, _ for
the purpose of apportioning the duty as between the various
items of property.

57 & 58 Vict. c. 30. 53

Postponed, See notes on sect. 6 (2), (p. 29, supra). The sub- § 8.

section applies equally to all property, whether settled or un- ~

settled, in respect of which estate duty is leviable. It is thought
that it will be mainly resorted to in the case of settled property.

Without excessive sacrifice. These words give the rule to
be applied in each case.

Not exceeding four per cent. /. e., if the return yielded by
the property does not exceed four per cent, on its capital value.

Any higher interest. If the return from the property
amounts to more than four per cent, on the capital value, the
Commissioners are, under this section, entitled to claim interest
at the rate actually yielded. #

(10.) Interest on arrears of estate duty shall be paid
as if they were arrears of legacy duty.

/. e.. Four per cent. (31 & 32 Yict. c. 124, s. 9.)
As to interest on the fixed duty payable on estates of under
600/., see sect. 16 (5), (p. 72, infra).

(11.) If after the expiration of twenty years from a
death upon which estate duty became leviable any such
duty remains unpaid, the Commissioners may, if they
think fit, on the application of any person accountable
or liable for such duty or interested in the property,
remit the payment of such duty or any part thereof or
any interest thereon.

The provisions of this sub-section will be salutary in cases
which do not fall within sub-sect. (2), supra.

(12.) Where it is proved to the satisfaction of the
Commissioners that too much estate duty has been paid,
the excess shall be repaid by them, and in cases where
the over-payment was due to over-valuation by the
Commissioners, with interest at three per cent, per
annum.

(13.) Where any proceeding for the recovery of
estate duty in respect of any property is instituted,
the High Court shall have jurisdiction to appoint a

54 DEATH DUTIES ( ENGLAND).

§ Q' receiver of the property and the rents and profits
thereof, and to order a sale of the property.

To the satisfaction of the Commissioners. An appeal lies
from a decision of the Commissioners under this sub-section
(sect. 10, p. 59, infra). Interest is payable as of course by the
Commissioners only in cases where the over-payment was due
to an over- valuation by them. The Court can, however, direct
the Commissioners to pay interest, under sect. 10 (3), (p. 61,
infra).

Where any proceeding, /.e., either by the Commissioners
(sect. 8 (1), note on "Recovery, " p. 45, supra), or under
sects. 9 (4), (p. 58, infra), or 14 (1), (p. 67, infra). In the
two latter cases, however, persons seeking to recover the duty
would proceed, it is thought, as a rule, under sect. 9 (5), (p. 58,
infra).

(14.) All affidavits, accounts, certificates, statements,
and forms used for the purpose of this Part of this Act
shall be in such form, and contain such particulars, as
may be prescribed, and if so required by the Commis-
sioners shall be in duplicate, and accounts and state-
ments shall be delivered and verified on oath and by
production of books and documents in the manner pre-
scribed, and any person who wilfully fails to comply
with the provisions of this enactment shall be liable to
the penalty above in this section mentioned.

(15.) No charge shall be made for any certificate
given by the Commissioners under this Act.

(16.) The estate duty may be collected by means of
stamps or such other means as the Commissioners pre-
scribe.

(17.) The form of certificate required to be given by
the proper officer of the Court under section thirty of
the Customs and Inland Eevenue Act, 1881, may be
varied by a rule of Court in such manner as may
appear necessary for carrying into effect this Act.

Affidavits. E.g., under sect. 6 (2), (p. 28, supra).
Accounts. Sub-sects. (3) & (4), supra.
.. Certificates. See sects, n, 12 & 13, (pp. 62—67, infra).

: 67 & 58 Vict. c. 30. 5§

Statements. Sub-sect. (5), supra, sect. 9 (2), (p. 56, %nfra\ 8 8.
sect. 11 (2), (p. 63, infra), =

Wilfully. See sub-sect. (6), supra.

Penalty. See sub-sect. (6), supra.

Certificate. Certificates are given under sect. 9 (2), (certifi-
cate of duty paid, p. 56, infra), and sect. 11 (1) & (2), and
sects. 12 & 13 (certificates of discharge, pp. 65 — 67, infra).

Stamps. See sect. 6 (1), (p. 28, supra).

The form of certificate. Section 30 of the Customs and Inland
Eevenue Act, 1881, enacts that no probate or letters of adminis-
tration shall be granted by the Probate, &c.. Division, unless
the same bear a certificate in writing under the hand of the
proper officer of the Court, showing that the affidavit for the
Commissioners of Inland Eevenue has been delivered, and that
such affidavit, if liable to stamp duty, was duly stamped, and
stating the amount of the gross value of the estate and effects
as shown by the account.

May be varied by a rule of Court. See notes on sect. 6,
sub-sect. (2), (p. 29, supra). Probate will, it is thought, be
granted if the certificate states that other property will sub-
sequently have to be brought into account (sect. 6 (3), p. 31,
supra), or that the Commissioners have allowed payment of duty
to be postponed. (Sub-sect. (9), supra.)

(18.) Nothing in this section shall render liable to or
accountable for duty a bond fide purchaser for valuable
consideration without notice.

Bona fide purchaser for valuable consideration without
notice. This sub-section exempts a purchaser for value from
personal liability to pay the duty, or to render accounts in
respect thereof if he has no notice of the death or that duty is
unpaid. (See infra.) By the following section duty is, in the
case of property not passing to the executor, made a charge on
the property, but (sect. 9 (1)) this charge does not attach to the
property in the hands of a bond fide purchaser for value without
notice.

In the case of property passing to the executor, as such, the
executor alone is liable for the duty (sub-sects. (3) and (4),
supra), and there is no charge for unpaid duty imposed on such
property (sect. 9 (1), p. 56, infra). It is thought, therefore,
that any person can safely deal with an executor as such. It is
to be observed that no person, except the executor, is made
personally liable for estate duty on personal property abroad of
which the deceased was competent to dispose, or of personal
property over which he had an unexercised power of appoint-
ment. As to how far duty is a charge on such last mentioned
property, see sect. 9 (1), (p. 56, infra), and notes.

It is not quite clear whether " without notice " means without

DEATH DUTIES (eNGLAND).

§8.

notice of the death or without notice of any unpaid duty. It is
thought that if any purchaser has notice of a death on which
the property passed, he should (except in the case of purchases
from the executor, as such) enquire whether duty has been paid.
(See notes on sect. 6 (8), p. 33, svpra.) See, however, sub-
sect. (2), supra.

As to what is notice, see the Conyeyanoing and Law of Pro-
perty Act, 1882, sect. 3.

Charge of
estate duty on
property, and
facilities for
raising it.

9. — (I.) A rateable part of the estate duty on an
estate in proportion to the value of any property which
does not pass to the executor as such, shall be a first
charge on the property in respect of which duty is levi-
able ; provided that the property shall not be so charge-
able as against a bond fide purchaser thereof for valu-
able consideration without notice.

Property which does not pass to the executor as such.

The duty is only made a charge on property not passing to the
executor as such. There is therefore no charge created under
this section on any property forming part of the free personal
estate of the deceased within the United Kingdom. A charge
is, however, created on the deceased's foreign personal estate,
which is liable to estate duty under sect. 2 (2), (p. 14, supra).
No charge is created on property liable to estate duty situate in
a British Possession so long as it is so situate. (Sect. 20 (2),
p. 78, infra.)

First charge. It was stated, when the Bill was before Parlia-
ment (26 Hansard, 4th Ser., pp. 1628, 1629), that the charge
created by this section would be subject to any incumbrances
existing at the date of the deceased's death. This, no doubt, is
the case in respect of property subject to a legal mortgage, inas-
much as the equity of redemption is the only property that passes
on the death. In the case of equitable incumbrances there is, it
is conceived, some doubt. If the only property passing on the
death was the residue of the property after deducting incum-
brances, sect. 7(1) should have been differently worded. That
section as it stands appears to contemplate that the ivhole pro-
perty passes, but that before duty is assessed incumbrances
have to be deducted.

Bona fide purchaser, &c. See notes to sect. 8 (18). A hond
fide purchaser for value without notice is protected in the case
of a certificate of discharge having been obtained by fraud.
(Sect. 11 (3), p. 64, infra).

(2.) On an application submitting in the prescribed
form the description of the lands or other subjects of
property (whether hereditaments, stocks, funds, shares,

57 & 58 Vict. c. 30. 5?

or securities), and of the debts and incumbrances allowed § 9'
by the Commissioners in assessing the value of the pro-
perty for the purposes of estate duty, the Commissioners
shall grant a certificate of the estate duty paid in respect
of the property, and specify the debts and incumbrances
so allowed, as well as the lands or other subjects of
property.

Application. I.e., by a person authorised or required to pay
the estate duty, who has paid such duty.

Lands or other subjects of property. As this section only
deals with property not passing to the executor as such, no cer-
tificate will be necessary in the case of stocks, &c. forming part
of the deceased's free personal estate in the United Kingdom.

Debts and incumbrances. I.e., the debts and incumbrances
allowed as against the property comprised in the certificate.

(3.) Subject to any repajmient of estate duty arising
from want of title to the land or other subjects of pro-
perty, or from the existence of any debt or incumbrance
thereon for which under this Act an allowance ought to
have been but has not been made, or from any other
cause, the certificate of the Commissioners shall be con-
clusive evidence that the amount of duty named therein
is a first charge on the lands or other subjects of pro-
perty after the debts and incumbrances allowed as
aforesaid : Provided that any such repayment of duty
by the Commissioners shall be made to the person
producing to them the said certificate.

From any other cause. E.g., over-valuation.

First charge . . . after the debts and incumbrances.

See the note on "First charge" under sub-sect. (1), supra.
The certificate will be evidence of the charge in the hands of
any person who has paid the duty in accordance with the Act,
"until the amount paid is recovered under (for example) sub-
sect. (4), infra, or raised under sub-sect. (5), infra, or of the
charge to which a limited owner who has paid the duty is
entitled under sub-sect. (6), infra.

Repayment of duty. See sect. 8 (12), (p. 53, supra).

Person producing . . . the said certificate. The certificate

58 DEATH DUTIES (eNGLAND).

§ 9. will be a transferable document. For example, if an executor

^ ^ '■ has, at tbe request of a devisee of real property, paid the duty,

and has been repaid by such devisee, the latter will be entitled
to the certificate. If too much duty has been paid, the certificate
will be evidence that the devisee is entitled to the return.

(4.) If the rateable part of the estate duty in respect
of any property is paid by the executor, it shall, where
occasion requires, be repaid to him by the trustees or
owners of the property, but if the duty is in respect of
real property, it may, unless otherwise agreed upon, be
repaid by the same instalments and with the same inte-
rest as are in this Act mentioned.

Is paid by the executor. See notes to sect. 6 (2), "may
pay," (p. 30, supra).

Be repaid to him. These words make the executor a creditor
of the *' trustee or owner" for the amount of duty paid by the
executor.

Trustees or owners. These words are probably sufficiently
wide for practical purposes. The phrase appears to have been
used instead of the phrase "persons accountable," because in
certain cases {e.g., foreign free personalty and personalty over
which the deceased had an unexercised power of appointment)
the executor himself is accountable for the duty, though the
property does not come into his hands. In these cases the
persons to repay the executor the amount of the duty would be
the " trustees or owners." A difficulty might possibly arise in
the case of real estate limited to a legal tenant for life with legal
remainders over.

Unless otherwise agreed upon. The executor should, before
paying duty on real property, be careful to have it agreed how
the duty is to be repaid ; otherwise he might find he had paid a
large sum, the repayment of which was to be extended over
several years.

Instalments. See sect. 6 (8), (p. 33, supra).

(5.) A person authorized or required to pay the estate
duty in respect of any property shall, for the purpose of
paying the duty, or raising the amount of the duty
when already paid, have power, whether the property is
or is not vested in him, to raise the amount of such duty
and any interest and expenses properly paid or incurred
by him in respect thereof, by the sale or mortgage of

57 & 58 Vict. c. 30. 59

or a terminable charge on that property, or any part § 9-
thereof.

(6.) A person having a limited interest in any
property, who pays the estate duty in respect of that
property, shall be entitled to the like charge, as if the
estate duty in respect of that property had been raised
by means of a mortgage to him.

(7.) Any money arising from the sale of property
comprised in a settlement, or held upon trust to lay out
upon the trusts of a settlement, and capital money
arising under the Settled Land Act, 1882, may be ex-
pended in paying any estate duty in respect of property
comprised in the settlement and held upon the same
trusts.

Authorised or required. I.e. , the person accountable for the
duty, and in the cases mentioned in sect. 6 (2), [notes on " may
pay," p. 30, supra), the executor. It is not clear whether this
sub-section confers any greater power upon an executor than he
now possesses to sell or mortgage property passing to him as
such (e. g. , leaseholds) before he has obtained jDrobate. It is
thought not. (See 26 Hansard, 4th Ser., p. 1636.) The
whole of this section deals, it is conceived, with property that
does not pass to the executor as such. As to the powers of an
executor before probate has been granted him, see Williams on
Executors, 9th edition, pp. 249 et seq.

Whether the property is or is not vested in Mm. E.g., an
equitable tenant for life or an executor who has paid the duty on
real estate.

Having a limited interest. Such a person (if entitled to the
property in possession) is accountable for the duty. (Sect. 8 (4),
p. 49, supra.)

Like charge. The certificate under sub-sect. (2), supra, will
be evidence in this case.

Capital money arising under the Settled Land Act. See
the Settled Land Act, 1882, ss. 7 (2), 11, 14, 16, 18, 31 (1) (ii),
32, 33, 35, 37 ; the Settled Land Act, 1889, s. 3.

Such money includes fines on leases, shares in mining rents
and in proceeds of sale of timber, proceeds of sale of heirlooms,
&c.

10. — (1.) Any person aggrieved by the decision of Appeal from
the. Commissioners with, respect to the repayment of any sioners."

'^^ DEATH DUTIES (eNGLANd).

§ ^Q* excess of duty paid, or by the amount of duty claimed
by the Commissioners, whether on the ground of the
value of any property or the rate charged or otherwise,
may, on payment of, or giving security as hereinafter
mentioned for, the duty claimed by the Commissioners
or such portion of it as is then payable by him, appeal
to the High Court within the time and in the manner
and on the conditions directed by rules of Court, and
the amount of duty shall be determined by the High
Court, and if the duty as determined is less than that
paid to the Commissioners the excess shall be repaid.

(2.) No appeal shall be allowed from any order,
direction, determination, or decision of the High Court
in any appeal under this section except with the leave
of the High Court or Court of Appeal.

By the decision. An appeal can only be made under the
Succession Duty Act, 1853 (sect. 50), where the liability to some
duty is admitted, and the only question is as to the amount. It
is thought (though the point is not free from doubt) that it is the
same under this Act. If no liability is admitted, the matter
would be brought before the Court by a writ of summons for
delivery of an account, and payment of what shall be found due.
[Re Greemuood, L. E. 4 Ex. 327.)

Value of any property. Sect. 7 (5) and (8), (pp. 39, 44, supra).

Or the rate charged. Sect. 4, (p. 17, supra).

Or otherwise. J^\g. , by refusal to deduct debts or incum-
brances which should have been deducted.

On payment of or giving security as hereinafter men-
tioned. See sub-sect. (4), infra.

High Court. The appeal would be made, it would appear, to
the Divisional Court. See E. S. C. 1883 ; Ord. LIX. r. 1 (d).
As to appeals to the County Court when the value of the property
is less than 10,000?., see sub-sect. (5), infra.

Within the time, &C. Eules of Court dealing with these
matters will be made in due course.

Amount of duty shall be determined. The Court will have

jurisdiction to go into all questions, e.g., value, allowance of
debts, &c. Questions of value may be referred to the arbitration
of properly appointed valuers, under sub-sect. (6), infra.

Except with the leave of the High Court or Court of

Appeal. See the Judicature Act, 1873, s. 45, for cases in which
leave to appeal from the High Court has to be obtained. As to

57 & 58 Vict. c. 30. 6i)

when leave will be granted, see Kirhy v. Biffen, 8 Q. B. D. § 10.

210; Exparte Gilchrist, 17 Q. B. D. 528; andcp. Bradley v. Baylis, —

8 Q. B. D. 195, and Barnes v. London, &c. Assurance Company,
(1892) 1 Q. B. 864. It is thought that appeals cannot be brought
from the County Court (see sub-sect. (5), infra) to the Divisional
Court, without leave being given either by the County Court or
the Divisional Court (sub-sect. (5), infra).

(3.) The costs of the appeal shall be in the discretion
of the Court, and the Court, where it appears to the
Court just, may order the Commissioners to pay on any
excess of duty repaid by them interest at the rate of
three per cent, per annum for such period as a23pears to
the Court just.

(4.) Provided that the High Court, if satisfied that
it would impose hardship to require the appellant as a
condition of an appeal, to pay the whole or, as the case
may be, any part of the duty claimed by the Commis-
sioners or of such portion of it as is then payable by
him, may allow an appeal to be brought on payment of
no duty, or of such part only of the duty as to the
Court seems reasonable, and on security to the satisfac-
tion of the Court being given for the duty, or so much
of the duty as is not so paid, but in such case the Court
may order interest at the rate of three per cent, per
annum to be paid on the unpaid duty so far as it
becomes payable under the decision of the Court.

The costs. This will prevent any question arising as to the
jurisdiction to give costs against the Crown.

Interest. Interest can only be claimed as of right against
the Commissioners when the over-payment of duty was due to an
over-valuation by them (sect. 8 (12), p. 53, supra).

In ordinary cases, payment of the duty claimed will be re-
quired as a condition precedent to hearing an appeal. The Court
has jurisdiction, in cases of hardship, to allow, instead of requir-
ing payment, security to be given for the whole or any part of
the duty. The Court cannot, however, dispense with both pay-
ment and security. - - ^

May. The Court has a discretion in the matter.

(5.) Where the value as alleged by the Commissioners
of the property in respect of which the dispute arises
does not exceed ten thousand pounds, the appeal under

62 DEATH DUTIES (eNGLANd).

§ IQ' this section may be to the county court for the county
or place in which the appellant resides or the property is.
situate, and this section shall for the purpose of the appeal
apply as if such county court were the High Court.

May. It would appear tliat it is not obligatory upon the
appellant to bring tbe appeal in the County Court.

Shall for the purpose of the appeal. As to appeals from
the County Court, see notes to sub-sect. (2), supra.

(6.) The county council of every county or county
borough in Great Britain, shall within twelve months
after the commencement of this Act, and may thereafter
from time to time, appoint a sufficient number of quali-
fied persons to act as valuers for the purposes of this
Act in their respective counties, and shall fix a scale of
charges for the remuneration of such persons, and the
Court may refer any question of disputed value under
this section to the arbitration of any person so appointed
for the county in which the appellant resides or the
property is situate, and the costs of any such arbitra-
tion shall be part of the costs of the appeal.

Valuers ... in their respective counties. The sub-
jects of property to be valued under this sub-section will, no
doubt, principally consist of land and houses. But it is thought
that valuers will be appointed for other subjects of property,
e.g. pictures, books, plate, works of art, «&;c.

For the county in which the appellant resides. E.g. if

the property to be valued consists of pictures, &c.

Or the property is situate. E.g. if the property is land or
houses.

Discharge from and Apportionment of Duty,
Eeleaseof n — n) The Commissioners on beins^ satisfied that

persons paying ^ ' ...

estate duty. the full estate duty has been or will be paid in respect
of an estate or any part thereof shall, if required by the
person accounting for the duty, give a certificate to that
efPect, which shall discharge from any further claim for
estate duty the property shown by the certificate to form
the estate or part thereof as the case may be.

57 & 58 Vict. c. 30. m

On being satisfied. If the Commissioners are not satisfied § 11.
that the full estate duty has been paid, they may refuse to
give a certificate, and no appeal will apparently lie from their
refusal.

Estate duty. Throughout the Act this phrase includes (when
the context admits) Settlement estate duty {notes to sect. 6 (1),
p. 29, supra).

An estate or any part thereof. Certificates will, it appears,
be given in respect of separate items of property.

If required. If the Commissioners are satisfied that the full
duty has been paid, it is obligatory upon them to grant a certi-
ficate of discharge.

By the person accounting for the same. I.e., the person
de facto paying the duty, if he is under this Act authorised or
required so to do {e.g. an executor who pays the duty on real
property at the request of the devisee ; sect. 6 (2), p. 29, supra).

Certificate. No charge is made by the Commissioners for
the certificate (sect. 8 (15), p. 54, infra).

Which shall discharge. If the certificate was obtained by
fraud or failure to disclose material facts, the discharge does not
take effect except in favour of a bond fide purchaser for value
without notice (sub-sect. 3, infra).

(2.) Where a person accountable for the estate duty
in respect of any property passing on a death applies
after the lapse of two years from such death to the
Commissioners, and delivers to them and verifies a full
statement to the best of his knowledge and belief of all
property passing on such death and the several persons
entitled thereto, the Commissioners may determine the
rate of the estate duty in respect of the property for
which the applicant is accountable, and on payment of
the duty at that rate, that property and the applicant
so far as regards that property shall be discharged from
any further claim for estate duty, and the Commissioners
shaU give a certificate of such discharge.

The provisions of this sub-section will be useful in the case of
a large and complicated estate. It may be difficult or impossible
to ascertain the exact value of such an estate within two years
from the death. If it is desired in such a case to deal with any
specific part of the estate duty free, an application can be made
to the Commissioners under this sub-section.

64 DIV^TH DUTIES (eNGLAND).

§ 11. Two years. No application can be made under this sub-
section under two years from the death.

May determine. It is not obligatory on the Commissioners
to determine the rate of duty under this sub-section. It is
doubtful whether an appeal lies from a determination of the
Commissioners under this sub-section, such a determination
being something in the nature of a compromise or commutation.
It is, however, conceived that if questions as to (for instance),
value or allowance of debts or incumbrances arise, an appeal
would lie on those points. (Sect. 10 (1), p. 59, supra.)

Shall be discharged. See the next sub- section.

Certificate of discharge. See sect. 8 (15), (p. 54, supra).

(3.) A certificate of the Commissioners under this
section shall not discharge any person or property from
estate duty in case of fraud or failure to disclose mate-
rial facts, and shall not affect the rate of duty payable
in respect of any property afterwards shown to have
passed on the death, and the duty in respect of such
property shall be at such rate as would be payable if
the value thereof were added to the value of the pro-
perty in respect of which duty has been already
accounted for ;

(4.) Provided nevertheless that a certificate purport-
ing to be a discharge of the whole estate duty payable
in respect of any property included in the certificate
shall exonerate a bond fide purchaser for valuable conr
sideration without notice from the duty notwithstanding
such fraud or failure.

Shall not discharge any person or property ... in case

of fraud or failure, &C. By this proviso a purchaser for value
without notice is protected ; but with that exception it would
appear that persons accountable for duty (sect. 8 (3) and (4),
pp. 48, 49, supra), and the property in their hands are, in the
case of fraud or failure to disclose material facts on the part of
any person, precisely in the same position as if no certificate
had been granted.

Example. — A., being a trustee of property liable to duty,
obtains a certificate of discharge by fraud. He retires from
the trust and B. is appointed in his place. B. is accountable
for the unpaid duty to the extent of the property actually
received or disposed of by him (sect. 8 (4), p. 49, supra), and
the property is liable to the charge under sect. 9 (p. 56,
supra).

57 & 58 Vict. c. 30. 65

And shall not affect. This is not confined to certificates § 11.'
obtained by fraud or failure to disclose material facts, but '

applies equally to bond fide certificates of discharge, under sub-
sects. (1) and (2).

Example. — A certificate of discharge is obtained in respect of
an estate worth 20,000?. (duty being at the rate of four per
cent.) (Sect. 17, p. 74, mfra.) There is no question of fraud
or failure to disclose material facts. Property worth 10,000?.
is afterwards found to have passed on the death. In order to
ascertain the rate of duty payable on the 10,000?., the 20,000?.
and 10,000?. must be added together. The rate payable on the
10,000?. will be four and a half per cent.— the total estate
amounting to 30,000?. (See sect. 17, p. 74, infra.)

Exonerate. /. e., both the purchaser from any personal
liability, and the property in his hands from any charge. (See
26 Hansard, 4th Ser., p. 1649.)

Without notice. I.e., of the fraud, or failui'e to disclose the
material facts. See notes on sect. 8 (18), (p. 6o, supra).

12. The Commissioners in their discretion, upon Commutation
application by a person entitled to an interest in ex- ^te^eg^ in
pectancy, may commute the estate duty which would expectancy.
or might, but for the commutation, become payable in
respect of such interest for a certain sum to be presently
paid, and for determining that sum shall cause a present
value to be set upon such duty, regard being had to the
contingencies affecting the liability to and rate and
amount of such duty, and interest being reckoned at
three per cent. ; and on the receipt of such sum they
shall give a certificate of discharge accordingly.

The provisions of this section will be valuable in the case of
persons desiring to deal with reversions expectant upon a life,
on the dropping in of which estate duty may become payable.
Cp. the Succession Duty Act, 1853, s. 41.

In their discretion. The Commissioners have a discretion
in the matter, and this should be borne in mind by persons
entering into negotiations for the purchase of reversions.

Interest in expectancy. See sect. 22 (l) (j) p. 83, infra. It
is thought that, as a rule, the Commissioners will be disinclined
to exercise their discretion, except in the case of a sale of the
interest.

Which would or might. Commutation can be made whether
the interest in expectancy is vested or contingent.

Cause a present value to be set. It is conceived that no
appeal lies from a determination of the Commissioners under

F. F

DEATH DUTIES (eNGLAND).

§ 12. this sub-section. (Op., however, sect. 11 (2), note " May deter-
mine," p. 64, supra.)

Contingencies affecting ... the rate. In many cases
regard will have to be had to the position in life and means of
the person upon whose death the interest in expectancy wiU
fall in.

And interest being reckoned at three per cent. These

words give the basis upon which calculations will be made in
the case of commutations under this section. The calculations
will be analogous to calculations as to the present value of a
sum payable a given number of years hereafter.

Certificate of discharge. See sect. 8 (15), p. 54, supra.
It is thought that in the case of fraud or failure to disclose
material facts the provisions of sect. 11 (3) (p. 64, supra) will
apply to a certificate granted under this section. If the
interest in expectancy is a reversion or remainder expectant
on the happening of some death, no further duty will, after a
certificate has been granted under this section, be payable on
the happening of such death in respect of the interest in ques-
tion. It is thought, however, that in such a case the value of
the interest would be taken into account for the purpose of
determining the rate of daty on the rest of the estate passing on
the death; sed quaere. See sects. 1 and 4 (pp. 2, 17, supra).

Powers to
accept com-
position for
death duties.

13. — (1.) Where, by reason of the number of deaths
on which property has passed or of the complicated
nature of the interests of different persons in property
which has passed on death, or from any other cause, it
is difficult to ascertain exactly the amount of death
duties or any of them payable in respect of any pro-
perty or any interest therein, or so to ascertain the
same without undue expense in proportion to the value
of the property or interest, the Commissioners on the
application of any person accountable for any duty
thereon, and upon his giving to them all the informa-
tion in his power respecting the amount of the property
and the several interests therein, and other circumstances
of the case, may by way of composition for all or any
of the death duties payable in respect of the property,
or interest, and the various interests therein, or any of
them, assess such sum on the value of the property, or
interest, as having regard to the circumstances appears

57 & 58 Vict. c. 30. e7

proper, and may accept payment of the sum so assessed, § 13.
in full discharge of all claims for death duties in respect
of such property or interest, and shall give a certificate
of discharge accordingly ;

(2.) Provided that the certificate shall not discharge
any person from any duty in case of fraud or failure
to disclose material facts.

(3.) In this section the expression " death duties "
means the estate duty under this Act, the duties men-
tioned in the First Schedule to this Act and the legacy
and succession duties, and the duty payable on any
representation or inventory under any Act in force
before the Customs and Inland Eevenue Act, 1881.

This section is supplemental to sect. 11 (2), (p. 63, supra).

Death duties. The meaning of this expression is defined in
the last paragraph of the section, which shows that the section
applies in cases where the death took place on or before 1st
August, 1894, as well as in cases where the death took place after
that date.

The power given by this section to the Commissioners to
compound death duties is larger than the power they already
possess. As to the power of the Commissioners to commute
legacy duty, see 36 Geo. 3, c. 52, s. 33 ; The Customs and Inland
Eevenue Acts, 1880, s. 11, and 1881, s. 43 ; and as to their power
to commute succession duty, see the Succession Duty Act, 1853,
s. 39, and The Customs and Inland Eevenue Act, 1880, s. 11.
There was, prior to this Act, no power to commute probate
duty.

Or any of them. The provisions of the former Acts, quoted
in the last 7iote, are apparently superseded. It may of course
(owing to difficulties as to aggregation, &c.), be difficult to ascer-
tain the proper rate of estate duty, while it is feasible to ascertain
the rate of succession duty.

Or interest. J^-g-, a life interest.

Certificate of discharge. See sect. 8 (15), p. 54, supra.

Shall not discharge. No provision is made for exonerating
a purchaser for value without notice. (See sect. 11 (3), p. 64,
supra.) This appears to be a casus omissus.

14. — (1.) In the case of property which does not pass Apportion-
to the executor as such, an amount equal to the proper ^^^ ° ^
rateable part of the estate duty may bo recovered by
the person, who being authorized or required to pay

68 DEATH DUTIES (eNGLAND).

§ 14« the estate duty in respect of any property has paid such
duty, from the person entitled to any sum charged on
such property, (whether as capital or as an annuity or
otherwise,) under a disposition not containing any
express provision to the contrary.

(2.) Any dispute as to the proportion of estate duty
to be borne by any property or person, may be deter-
mined upon application by any person interested in
manner directed by Eules of Court, either by the High
Court, or, where the amount in dispute is less than fifty
pounds, by a County Court for the county or place in
which the person recovering the same resides, or the
property in respect of which the duty is paid is situate.

(3.) Any person from whom a rateable part of estate
duty can be recovered under this section shall be bound
by the accounts and valuations as settled between the
person entitled to recover the same and the Commis-
sioners.

Which does not pass to the executor as such. I.e., all the
property passing on the death of the deceased except his free
personalty within the United Kingdom.

May be recovered. This makes the rateable amount of duty
a debt due from the person entitled to the sum charged to the
person paying the duty.

Authorised. E.g., the executor, sect. 6 (2), (p. 29, supra).
Or required to pay. E.g., the trustees, and, in certain cases,
the person entitled to the enjoyment of the property as a whole.
(See sect. 8 (4), p. 49, supra.)
Examples : —

(i) A. , by will, leaves Whiteacre to trustees upon trust for

B. for life, but charged with an annuity in favour of C.

The trustees must pay the estate duty on the whole

of Whiteacre, and they will then be entitled to recover

the rateable part of the duty from C. in proportion to

the amount of his annuity.

(ii) A. leaves his freehold cotton mill and works to B.,

charged with 10,000/. in favour of 0. B. cannot

deduct the 10,000/. from the value of the mill, &c.

(See sect. 7 (1), (a), p. 34, supra.) He must pay the

duty on the gross value, and recover a rateable part

thereof from C.

(iii) Property is settled by a stranger on A. for life, with

remainder to secure an annuity to B. with remainder to

57 & 58 Vict. c. 30.

0. absolutely. On A.'s death C. may deduct the § 14,

capital value of the annuity from the value of the

property (sect. 7 (1), (a) p. 34, supra), and B. will
have to pay the duty on such capital value.

Not containing any express provision to the contrary.

Testators and settlors will be able to throw the estate duty on
charges in favour of a wife and younger children on to the
corpus of the estate.

Any dispute as to the proportion. The liability to some
duty must, it is thought, be admitted.

Upon application. This is an original application, and not
by way of appeal from the Commissioners, who have apparently
no jurisdiction to decide such a dispute as is referred to in this
sub-section.

15. — (1.) Estate duty shall not be payable in respect Exemptions
of a single annuity not exceeding twenty-five pounds dut^.^^
purchased or provided by the deceased, either by him-
self alone, or in concert or arrangement with any other
person, for the life of himself and of some other person
and the survivor of them, or to arise on his own death
in favour of some other person ; and if in any case
there is more than one such annuity, the annuity first
granted shall be alone entitled to the exemption under
this section.

(2.) It shall be lawful for the Treasury to remit the
estate duty, or any other duty leviable on or with refer-
ence to death, in respect of any such pictures, prints,
books, manuscripts, works of art or scientific collections,
as appear to the Treasury to be of national, scientific, or
historic interest, and to be given or bequeathed for
national purposes, or to any university, or to any county
council or municipal corporation, and no property the
duty in respect of which is so remitted shall be aggre-
gated with any other property for the purpose of fixing
the rate of estate duty.

(3.) Estate duty shall not be payable in respect of
any pension or annuity payable by the government of
British India to the widow or child of any deceased

70 DEATH DUTIES (eNGLAND).

§ 15. officer of sucli government, notwithstanding that the
deceased contributed during his lifetime to any fund out
of which such pension or annuity is paid.

(4.) Estate duty shall not be payable in respect of
any advowson or church patronage which would have
been free from succession duty under section twenty-
four of the Succession Duty Act, 1853.

Property passing on the death of the deceased and exempted
from estate duty is not aggregated with other property for the
purpose of determining the rate of the duty. (Sect. 4, p. 17,
supra.) For a list of exemptions from estate duty, see the
notes on sect. 1, " Save as hereinafter expressly provided,"
(p. 2, supra).

Single annuity. . . . Such an annuity would prima fade
fall under sect. 2 (1), (d), (p. 13, supra).

If . . . there is more than one. Apparently if a man pur-
chased a dozen survivorship annuities, the one first granted
would escape estate duty on his death.

For national scientific purposes. If the gift is for these
purposes, it is apparently immaterial who are the donees. It is
conceived that the word " scientific" is used in its widest signi-
fication, and that a gift for the general advancement of art,
literature, or science would be a gift for a national scientific pur-
pose. For examj)lo, a gift of books to the trustees of the British
Museum, or of pictures to the trustees of the South Kensington
Museum, would, it is thought, fall within this provision.

Or to any university. I.e. given or bequeathed to any uni-
versity. It is doubtful whether " university " includes a college
at a university.

No property . . . shall be aggregated. See sect. 4,

(p. 17, supra).

Pension or annuity. Such a pension or annuity would
otherwise fall within sect. 2(1), (c) or (d), (pp. 8, 13, supra).

Advowson. Sect. 24 of the Succession Duty Act, 1853, runs
as follows : — "A successor shall not be chargeable with duty in
respect of any advowson or church patronage comprised in his
succession, unless the same or some right of presentation, or
some other interest in or out of such advowson or church
patronage, shall be disposed of by or in concert with him for
money or money's worth, in which case he shall be chargeable
with duty upon the amount or value of the money or money's
worth for which the same or any such presentation or interest
shall be disposed of at the time of such disposal."

It is submitted that, even if the advowson, or any interest
therein, is sold by the successor, so that succession duty becomes
payable as mentioned in the section just quoted, estate duty will

57 & 58 Vict. c. 30. 71

not be payable on the proceeds of sale as being property pass- § 16.

ing on the death of the predecessor. A gift by will of the

next presentation to a living confers a chattel interest, which
is chargeable with duty as a legacy out of real estate within
the meaning of 45 Geo. 3, c. 28, s. 4. Such a gift would have,
it is thought, to be brought into account for the purpose of
assessing estate duty.

Small Estates.

16. — (1.) The provisions of sections thirty- three, Provision for
thirty-five, and thirty-six of the Customs and Inland exceeding
Eevenue Act, 1881, (relating to the obtaining of repre- lf&45 yict.
sentation to the deceased where the gross value of his ^- im-
personal estate does not exceed three hundred pounds,)
shall apply with the necessary modifications to the case
where the gross value of the property real and personal
in respect of which estate duty is payable on the death
of the deceased, exclusive of property settled otherwise
than by the will of the deceased, does not exceed five
hundred pounds, and where the gross value does not
exceed three hundred pounds the fixed duty shall be
thirty shilHngs, and where the gross value exceeds
three hundred pounds and does not exceed five hundred
pounds the fixed duty shall be fifty shillings.

(2.) All such property may be comprised in the
notice under the said section thirty-three.

(3.) Where the net value of the property, real and
personal, in respect of which estate duty is payable on
the death of the deceased, exclusive of property settled
otherwise than by the will of the deceased, does not
exceed one thousand pounds, such property, for the
purpose of estate duty, shall not be aggregated with
any other property, but shall form an estate by itself ;
and where the fixed duty or estate duty has been paid
upon the principal value of that estate, the Settlement
estate duty and the legacy and succession duties shall
not be payable under the will or intestacy of the
deceased in respect of that estate.

DEATH DUTIES (eNGLAND).

§16,

Provisions as
to obtaining
probate, &c.,
where gi-oss
value of estate
does not ex-
ceed 300^.

(4.) Where representation granted under this section,
if granted in England extends to property in Ireland,
and if granted in Ireland extends to property in
England, the principal registrar of the Prohate Divi-
sion of the High Court in England or Ireland, as the
case may be, shall affix the seal of the Court thereto on
the same being sent to him for that purpose, with the
fee of two shillings and sixpence.

(5.) Where the fixed duty of thirty or fifty shillings
is paid within twelve months after the death of the
deceased, interest on such duty shall not be payable.

Sects. 33, 35, and 36 of the Customs and Inland Eevenue Act,
1881, run as follows : —

" 33. — (1.) Where the whole personal estate and effects of any
person dying on or after the first day of June, one thousand
eight hundred and eighty-one (inclusive of property by law
made such personal estate and effects for the purpose of the
charge of duty, and any personal estate and effects situate out
of the United Kingdom), without any deduction for debts or
funeral expenses, shall not exceed the value of three hundred
pounds, it shall be lawful for the person intending to apply for
probate or letters of administration in England or Ireland, to
deliver to the proper officer of the Court, or to any officer of In-
land Eevenue duly appointed for the purpose, a notice in writing
in the prescribed form, setting forth the particulars of such estate
and etlects, and such further particulars as may be required to
be stated therein, and to deposit with him the sum of fifteen
shillings for fees of Court and expenses ; and also, in case the
estate and effects shall exceed the value of one hundred pounds,
the further sum of thirty shillings for stamp duty.

" (2.) If the officer has good reason to believe that the whole
personal estate and effects of the deceased exceeds the value of
three hundred pounds, he shall refuse to accept the notice and
deposit until he is satisfied of the true value thereof.

"(3.) The principal registrars of the Probate, Divorce, and
Admiralty Division of the High Court of Justice in England,
and of the Probate and Matrimonial Division of the High Court
of Justice in Ireland, in communication with the Commissioners
of Inland Eevenue, shall prescribe the form of notice, and make
such regulations as may be necessary ^dth respect to the trans-
mission of notices by officers of Inland Eevenue, the steps to be
taken for the preparation and filling up of forms and documents,
and generally all matters which may be necessary, so as to
authorise the grant of probate or letters of administration.

"(4.) Officers of Inland Eevenue are hereby empowered to
administer all necessary oaths or affirmations, and in the case of
letters of administration, to attest the bond and accept the same
on behalf of the president or judge of the division.

57 & 58 Vict. c. 30. 'iS

"(5.) Where the estate and effects shall exceed the value of §16.
one hundred pounds, the stamp duty payable on the affidavit "

for the Commissioners of Inland Eevenue shall be the fixed duty
of thirty shillings, and no more."

"35. Where representation has been obtained in conformity Provision in
with either of the two preceding sections, and it shall be at any case of subse-
time afterwards discovered that the whole estate and effects of quent dis-
the deceased were of a value exceeding three hundred pounds, J^e v^alue of
then a sum equal to the stamp duty payable on an affidavit or estate exceeded
inventory in respect of the true value of such estate and effects 300/.
shall be a debt due to her Majesty from the person acting in the
administration of such estate and effects, and no allowance shall
be made in respect of the sums deposited or paid by him, nor
shall the relief afforded by the next succeeding section be
claimed or allowed by reason of the deposit or payment of any
sum."

" 36. The payment of the sum of thii'ty shillings for the fixed Relief from
duty on the affidavit or inventory in conformity with this Act legacy duty-
shall be deemed to be in full satisfaction of any claim to legacy o^^Pf ^^^ under
duty or succession duty in respect of the estate or effects to
which such affidavit or inventory relates."

Gross value. No deduction of any sort must apparently be
made for debts or incumbrances under sect. 7 (1) (p. 34, supra).
But there seems to be some hardship in not deducting at any
rate ancestral mortgages ; it might perhaps be said in this case
that as the only property passing on the death is the equity of
redemption, the gross value of the property is the gross value
of the equity of redemption. But it is doubtful whether such
an argument would prevail.

Exclusive of property settled otherwise than by the will.
All settled property (except property settled by the will of the
deceased) is excluded, whether comprised in a marriage or
voluntary settlement. Estate duty will be paid at the appro-
priate rates on the settled property, which will be aggregated in
the ordinary way.

All such property. I.e., real as well as personal property
(exclusive of property settled otherwise by the will of the

Q6CG3,SGQ. )

" The proper officer of the Court," in sect. 33 (1) of the Act of
1881 above cited, means the officer of the Probate Division
having jurisdiction to make the grant. The grant, unless made
by the principal registry, can only be made by the registrar of
the district where the deceased resided. (20 & 21 Vict. c. 77,
s. 46.) Authority is, therefore, conferred under this section in
most towns on Inland Eevenue officers, who act as inter-
mediaries in obtaining the grant when the person desiring the
grant does not live in the district where the deceased resided.

If the gross estate (exclusive as aforesaid) is less than 100/.,
no duty would, it is thought, be payable : the fee of 15s. would
alone be required.

Net value. I-e., after making the deductions allowed by
sect. 7 (1) and (5) (pp. 34, 39, supra).

DEATH DUTIES (eNGLANd).

§ 16. Exclusive of property settled. See twte on these words

under sub-sect. (1), supra.

Fixed duty. I.e., the duty payable under sub-sect. (1) in
cases in which the gross value of the property in question does
not exceed 5001.

Estate duty. This will be the duty payable if the net value
of the property is less than 1,000?., and the gross value exceeds
500?.

The Settlement estate duty. I.e., if the property is settled
by the will of the deceased.

Legacy and succession duty. Cp. sect. 36 of the Act of

1881, cited supra. The exemption does not, of course, extend
to property settled otherwise than by the wiU. of the deceased.

Interest on such duty. I.e., the provisions of sect. 8 (10)
(p. 53, supra) do not apply if the fixed duty is paid within
twelve months after the death. If, however, the duty is not
paid within that time, interest would run from the expiration of
six months from the death. (Sect. 6 (7), p. 32, supra ; sect. 8
(10), p. 53, supra.)

Scale of rates
of estate duty.

17. The rates of estate duty shall be according to the
following scale : —

Where the Principal Value of the Estate

Estate Duty shall be payable
at the Eate per cent, of

£> £
Exceeds 100 and does not exceed 500

One pound.

500

, 1,000

Two pounds.

„ 1,000

, 10,000

Three pounds.

„ 10,000

25,000

Four pounds.

„ 25,000

50,000

Four pounds ten shillings.

„ 50,000

75,000

Five pounds.

,, 75,000

, 100,000

Five pounds ten shillings.

,, 100,000

, 150,000

Six pounds.

„ 150,000

, 250,000

Six pounds ten shillings.

,, 250,000

, 500,000

Seven pounds.

„ 500,000

, 1,000,000

Seven pounds ten shillings.

„ 1,000,000

- . .

Eight pounds.

The rate of the Settlement estate duty where the pro-
perty is settled shall be one per cent.

Provided that for any fractional part of ten pounds
over ten pounds or any multiple thereof, the estate duty

57 & 58 Vict. c. SO. 70

and the Settlement estate duty shall be payable at the § 17.
rate per cent, for the full sum of ten pounds.

In this section estate duty and Settlement estate duty are dis-
tinguished. In the sections of the Act dealing with collection,
repayment and recovery of the duty, discharges, &c., the expres-
sion " estate duty " includes Settlement estate duty.

Succession Duty,
18. — (1.) The value for the purpose of succession Value of real

, . p . , 1 ... ., successions for

duty 01 a succession to real property arising on the successiou
death of a deceased person shall, where the successor is *^^'
competent to dispose of the property, be the principal
value of the property, after deducting the estate duty
payable in respect thereof on the said death and the
expenses if any properly incurred of raising and paying
the same ; and the duty shall be a charge on the pro-
perty, and shall be payable by the same instalments
as are authorized by this Act for estate duty on real
property, with interest at the rate of three per cent, per
annum ; and the first instalment shall be payable and
the interest shall begin to run at the expiration of
twelve months after the date on which the successor
became entitled in possession to his succession or to the
receipt of the income and profit thereof ; and after the
expiration of the said twelve months the provisions with
respect to discount shall not apply.

(2.) The principal value of real property for the
purpose of succession duty shall be ascertained in the
same manner as it would be ascertained under the
provisions of this Act for the purpose of estate duty ;
and in the case of any agricultural property where no
part of the principal value is due to the expectation of
an increased income from such property, the annual
value for the purpose of succession duty shall be arrived
at in the same manner as under the provisions of this
part of this Act for the purpose of estate duty.

This section supersedes sect. 21, and the following sections of

i 6 DEATH DUTIES (eNGLANd).

§ 18. the Succession Duty Act, 1853, sect. 22 of The Customs and In-
■"~'' ^ land Eevenue Act, 1888, and sects. 6 of The Customs and Inland

Revenue Act, 1889, in cases in which the successor is competent
to dispose of the property.

With regard to sect. 6 of the Act of 1889, it has been pointed
out in the notes to sect. 1 (p. 5, supra), that the duty imposed
by that section is still apparently chargeable in cases in which
estate duty is not payable {e.g., in the case of settled property
where estate duty has been paid on a prior death, and the pro-
perty is cleared of duty under sect. 5 (2), (p. 22, supra). This
duty is an additional succession duty (Act of 1889, sect. 6 (4) and
(o)). Succession duty is not payable if the succession does not
fall into possession. (See note on " The first instalment shall be
payable," infra.)

Competent to dispose of the property. (See sect. 22 (2) (a),
p. 85, infra.) As a successor, who has a general power of ap-
pointment, is competent to dispose of the property, no question
will, it is thought, arise under sects. 4 and 33 of the Succession
Duty Act, 1853, in case the power is exercised.

Principal value. (See the next sub-section.)

By the same instalments as are authorised by this Act.

See sect. 6 (8) (p. 33, supra).

The first instalment shall be payable. The first instalment
being made payable twelve months after the successor becomes
entitled in possession to his succession, it follows that no duty is
payable if the successor dies before he becomes entitled in posses-
sion. (See 27 Hansard, 4th Ser., p. 79.) The result seems to be
the same as if sect. 14 of the Succession Duty Act, 1853, was in
terms made applicable to successions to real property under this
section. Under sect. 21 of the Succession Duty Act, 1853, the
successor had no taxable interest in real estate unless he became
entitled in possession.

The provisions with respect to discount. Discount at four
per cent, is allowed under the Succession Duty Act, 1853, s. 40,
in the case of payments in advance, and under The Customs and
Inland Eevenue Act, 1888, sect. 22 (2), at such rate as the Com-
missioners of the Treasury may prescribe. Under this section
discount will apparently only be allowed on payments of duty in
advance made before the expiration of twelve months from the
death.

Principal value. (See sect. 7 (5), and (8), pp. 39, 44, supra.)
It is conceived that though the value of the property itself is
to be ascertained, for the purpose of succession duty, in the same
manner and by the same means as if it was being ascertained
for the purpose of estate duty under this Act, the law as to the
allowance to be made for incumbrances remains the same as before
the Act. Under sect. 34 of the Succession Duty Act, 1853, no
allowance can be made, in estimating the value of a succession,

57 & 58 Vict. c. 30. n

in respect of incumbrances created or incurred by the successor, § 18.
not made in execution of a prior general power of appointment,
but an allowance can be made for all other incumbrances. The
incumbrances which can be deducted under the section last
referred to include incumbrances which would not be allowed
for in ascertaining the value of the property for the purpose of
estate duty.

Agricultural property. See notes on the provisions of
sect. 7 (5), (p. 39, supra). As to the allowance of incumbrances
under the Succession Duty Act, 1853, s. 34, see last note.

Annual value. It is conceived that the provisions of this sub-
section with regard to agricultural property are (equally as with
regard to other real property) only intended to apply in the case
of the successor being competent to dispose of the property.
It may, however, be held that a new rule is introduced in all
cases for the ascertainment of annual value.

Local Taxation Grant.
19. In substitution for the grant out of the probate Adaptation of
duties under the Local Grovernment Act, 1888, the probate duty
Probate Duty (Scotland and Ireland) Act, 1888, and fi''^*52Vict
the Local Grovernment (Scotland) Act, 1889, there shall cc. 4i and 60,
be paid, out of the proceeds of the estate duty derived c. 50.
from personal property, such sum as the Commissioners,
in accordance with regulations made by the Treasury
under those Acts, may determine to be an amount equal
to one and a half per cent, on the net value of such of
the property in respect of which estate duty is leviable
as would, if this Act had not been passed, have been
chargeable with the duty imposed by section twenty-
seven of the Customs and Inland Revenue Act, 1881, on
Inland Revenue affidavits, and the first-mentioned Acts
shall apply, as if the sum so determined were the pro-
bate duty grant or one half of the proceeds of the sums
collected in respect of the probate duties (as the case
requires) within the meaning of those Acts.

British Possessions.

20. — (1.) Where the Commissioners are satisfied, that Exception as
in a British possession to which this section applies, duty BrSish pes-

^8 DEATH DUTIES (eNGLAND).

-__l____ ^^ payable by reason of a deatb in respect of any pro-
perty situate in such possession and passing on such
death, they shall allow a sum equal to the amount of
that duty to be deducted from the estate duty payable
in respect of that property on the same death.

(2.) Nothing in this Act shall be held to create a
charge for estate duty on any property situate in a
British possession, while so situate, or to authorize the
Commissioners to take any proceedings in a British
possession for the recovery of any estate duty.

(3.) Her Majesty the Queen may, by Order in
Council, apply this section to any British possession
where Her Majesty is satisfied that by the law of such
possession, either no duty is leviable in respect of pro-
perty situate in the United Kingdom when passing on
death, or that the law of such possession as respects any
duty so leviable is to the like effect as the foregoing
provisions of this section.

(4.) Her Majesty in Council may revoke any such
Order, where it appears that the law of the British
possession has been so altered that it would not autho-
rize the making of an Order under this section.

Property situate in a British Possession. As to when
property situate in a British Possession is liable to estate duty,
see sect. 2 (2), (p. 14, supra). The following property, though
in one sense colonial, is treated as situate in the United King-
dom, and would, it is thought, be liable to estate duty, even
though the deceased was domiciled abroad: — (1) Colonial In-
scribed Stock transferable only on the books of the Bank of
England, or any other bank in London ; (2) the registered
stock of a British joint stock company carrying on business
abroad ; (3) the registered stock of a foreign company having a
register in the United Kingdom.

Nothing in this Act shall be held to create a charge.

The provisions of this sub-section appear to be general, and not
to apply merely in the case of British Possessions to which this
section has been applied.

Either no duty is leviable. Before this section can be
applied to any British Possession one or other of the two follow-
ing conditions must be fulfilled : — (1) There must be no duty

57 & 58 Vict. c. 30. 79

leviable on death in tlie Britisli Possession on property situate § 20.

in the United Kingdom ; (2) if duty is leviable in the British

Possession on such property, a deduction must, by the law of
the possession, be allowed of the death duties payable in the
United King-dom.

Savings and Definitions.

21. — (1.) Estate duty shall not be payable on the Savings.
death of a deceased person in respect of personal pro-
perty settled by a will or disposition made by a person
dying before the commencement of this part of this Act,
in respect of which property any duty mentioned in
paragraphs one and two of the First Schedule to this
Act, or the duty payable on any representation or
inventory under any Act in force before the Customs
and Inland Revenue Act, 1881, has been paid or is
payable, unless in either case the deceased was at the
time of his death, or at any time since the will or
disposition took effect had been, competent to dispose
of the property.

See notes on sect. 1, (p. 2, supra), "Save as hereinafter expressly
provided." The property exempted from estate duty by this sub-
section consists of personal property settled ( 1 ) by a will made by
a person dying on or before the 1st August, 1894, if probate duty
has been paid or is payable in respect thereof, either under the
Act of 1881, or the previous Acts ; (2) by a voluntary settlement
made by a person dying on or before 1st August, 1 894, if account
duty has been paid or is payable in respect thereof under the Act
of 1881. If, however, the deceased was at the time of his death,
or had been at any time since the will or settlement took effect,
competent to dispose (see sect. 22 (2) (a), p. 85, infra) of the
property, estate duty will be payable on his death in the ordi-
nary way.
Examples : —

(i) A., who died in 1890, settled, by his will, 10,000Z.
Consols upon trust for B. for life, and after his death
for C. absolutely. B. dies after 1st August, 1894. No
estate duty is payable on his death,
(ii) A., who died in 1890, settled, by his will, 10,000Z.
Consols upon B. for life, but gives him a general
power of appointment. Estate duty is payable on B.'s
death,
(iii) The same result takes place if B. releases his general
power of appoirxtment, or exercises it and re-settles the
property, giving himself merely a life interest.

BO DEATH DUTIES (eNGLANd).

§ 21. (iv) The same result takes place if tlie property lias been

-"" similarly settled by a voluntary settlement made on or

before 1st August, 1894, in respect of which Account
duty has been paid on the death of the settlor,
(v) Foreign personalty is settled by the will of A. (who died
in 1890) upon trust for B. for life. Probate duty not
having been paid in respect of this property, estate
duty will be paid on B.'s death.
Or is payable. In many cases (e. (/., in the case of persons
dying on the 1st August, 1894), the Act will have come into
operation before the death duties can possibly have been paid.
In such cases the old duties remain payable as if this Act had
not been passed. See next sub-section.

(2.) Where a person died before the commencement
of this part of this Act, the duties mentioned in the
First Schedule to this Act shall continue to be payable
in like manner in all respects as if this Act had not
passed.

Where a person died. Estate duty is not payable on the
death of any person dying on or before 1st August, 1894; but
the duties mentioned in the First Schedule remain payable as if
the Act had not been passed.

(3.) Where an interest in expectancy in any pro-
perty has, before the commencement of this part of this
Act, been bona fide sold or mortgaged for full con-
sideration in money or money's worth, then no other
duty on such property shall be payable by the purchaser
or mortgagee when the interest falls into possession,
than would have been payable if this Act had not
passed ; and in the case of a mortgage, any higher
duty payable by the mortgagor shall rank as a charge
subsequent to that of the mortgagee.

Interest in expectancy. See sect. 22 (l) (j), (p. 83, infra).

This sub -section is for the benefit of persons who have purchased
or lent money on the security of reversions, expectant on the de-
termination of lives, on or before the 1st August, 1894. In such
cases, allowance has always been made, in calculating the
amount of the purchase money, in advance, for the duties which
will become payable upon the interest falling into possession.

Full consideration in money or money's worth. See note
to sect. 3 (1) (p. 16, iujmx), and to sect. 7 (1) (a) (p. 34,
supra).

57& 58 Vict. c. 30. 81

No other duty. The purchaser or mortgagee will, it is § 21.
thought, have to pay the same duties, on the interest falling into '

possession, as would have been payable if this Act had not been
passed, including duties which would have been covered by
estate duty.

Example. — Property is settled by A.'s father on A. for life,
with remainder to B. (A.'s son) in fee. B., before 1st August,
1894, sells his reversion to C. The duties which would become
payable on A.'s death if this Act had not been passed, are 1 per
cent, succession duty (First Schedule, paragraph 5), and the
additional ^ per cent. (First Schedule, paragraph 3). C. will
have, on A.'s death, to pay these two latter duties, and not
estate duty.

For the future, persons intending to purchase or lend money
on the security of reversions must avail themselves of the pro-
visions of sect. 12, (p. 65, supra).

Any higher duty. The mortgagor will pay estate duty on
his equity of redemption, but the charge (sect. 9 (1), p. 56,
supra) will rank after the mortgage. It is thought that the
value of an interest in expectancy will not be aggregated with
other property upon the death upon which it falls into posses-
sion, if it has been out and out sold before the 1st August, 1894,
and that if it has been mortgaged, it will be exempted from
aggregation to the extent of the moneys secured (see sect. 4,
p. 17, supra, under which only property chargeable with estate
duty can be aggregated).

(4.) The Settlement estate duty of one per cent, shall
not be payable in respect of property settled by a
disposition which has taken effect before the commence-
ment of this Part of this Act.

Settlement estate duty. See sect. 5 (1), (p. 20, supra).

(5.) Where a husband or wife is entitled, either
solely or jointly with the other, to the income of any
property settled by the other under a disposition which
has taken effect before the commencement of this Part
of this Act, and on his or her death the survivor becomes
entitled to the income of the property settled by such
survivor, estate duty shall not be payable in respect of
that property until the death of the survivor.

Where a husband or wife. The ordinary case is that of
pin money settled by a husband on a wife. The conditions are
(1) the instrument must have taken effect on or before 1st
August, 1894 ; (2) the settlement must have been made by the

F. G

82 DEATH DUTIES (eNGLAND).

§ SI. one spouse upon the other ; (3) the one who makes the settle-
ment must be the survivor.

Estate duty. It must be remembered that the Settlement
estate duty is not payable where the only life interest, after the
death of the deceased, is that of the wife or husband of the
deceased (sect. 5 (1), (a), p. 20, supra). See note to that section
on the question, whether Settlement estate duty is payable when
there is more than one life interest after the death of the deceased,
including that of the deceased's wife or husband. If Settlement
estate duty is payable in such a case, this sub-section, it is
thought, applies. (See 7iote to sect. 6 (1), p. 28, supra.)

The rate of estate duty will, it is conceived, be the appropriate
rate payable on property passing on the death of the survivor.
Example : —

(i) A. settles Whiteacre, on his marriage, on himself for
life, charged with a rent-charge in favour of B., his
wife, during her life, with remainder to his children in
tail. B. predeceases A. Estate duty is not payable on
B.'s death,
(ii) The same result takes place if A. gives B. (his wife) the
first life interest in his settled property. If B. survives
A. , the duty is payable on her death in the ordinary way.

Defiuitions. 22. — (1.) Ill this Part of this Act, unless the context

otherwise requires : —

(a) The expressions " deceased person " and " the

deceased" mean a person dying after the
commencement of this Part of this Act.
/. e., after 1st August, 1894 (sect. 24, p. 91, infra).

(b) The expression "will" includes any testamentary

instrument.

of a will or letters of administration.

(d) The expression '' executor " means the executor

or administrator of a deceased person, and
includes, as regards any obligation under this
Part of this Act, any person who takes posses-
sion of or intermeddles with the personal
property of a deceased person.

(e) The expression " estate duty " means estate duty

under this Act.

The temporary duties under sects. 5 and 6 of the Customs, &c.,
Act, 1889, are called estate duties.

57 & 58 Vict. c. 30. 83

(f) The expression "property " includes real property § *^^'

and personal property and the proceeds of sale
thereof respectively and any money or invest-
ment for the time being representing the
proceeds of sale.

(g) The expression " agricultural property " means

agricultural land, pasture and woodland, and
also includes such cottages, farm buildings,
farm houses, and mansion houses (together
with the lands occupied therewith), as are of
a character appropriate to the property.

(h) The expression " settled property " means pro-
perty comprised in a settlement.

(i) The expression " settlement " means any instru-
ment, whether relating to real property or
personal property, which is a settlement
within the meaning of section two of the
Settled Land Act, 1882, or if it related to 45 & 46 Vict.
real property would be a settlement within ^'
the meaning of that section, and includes a
settlement effected by a parol trust.

Settlement. Sect. 2 (l), of tlie Settled Land Act, 1882, runs
as follows : — "Any deed, will, agreement for a settlement, or
other agreement, covenant to surrender, copy of court roll, Act
of Parliament, or other instrument, or any number of instru-
ments, whether made or passed before or after, or partly before
and partly after the commencement of this Act, under or by
virtue of which instrument or instruments any land, or any
estate or interest in land, stands for the time being limited to
or in trust for any persons bj' way of succession, creates or is
for purposes of this Act a settlement, and is in this Act referred
to as a settlement, or as settlements, as the case requires."

One settlement may be created by a series of instruments.
{Be Mundy, (1891) 1 Ch. 399 ; Re Bijiig, (1892) 2 Ch. 219.) See
note on sect. 5 (2), (p. 22, supra).

Parol trust. See Lewin on Trusts, 9th ed., pp. 50 et seq.

(j) The expression " interest in expectancy " includes
an estate in remainder or reversion and every

84 DEATH DUTIES (eNGLANd).

§ ^^* other future interest whether vested or con-

tingent, but does not include reversions
expectant upon the determination of leases.

Interest in expectancy. (See sect. 7 (6), p. 42, supra;

sect. 12, p. Qb, supra; sect. 21 (3), p. 80, supra.)

Future interest. This phrase would seem to include every
interest arising at a future time, but the right to, or exj)ectation
of, which passed on the death of the deceased. Thus it is sug-
gested that if A. is entitled in fee to an estate which he has
voluntarily charged with a jointure of 100/. per annum, payable
during the life of C. (which is not an incumbrance within the
meaning of sect. 7 (1), p. 34, supra), the capitalized value of
the jointure would be an interest in expectancy passing on A.'s
death which could be dealt with under sect. 7 (6), (p. 42, supra).

See note to sect. 5 (2), (p. 25, supra).

(k) The expression " incumbrances " includes mort-
gages and terminable charges.

Terminable charges. If a terminable charge has been volun-
tarily created by the deceased in his lifetime, it cannot apparently
be deducted from the value of the estate under sect. 7(1) (p. 34,
supra). As to whether it could be treated as an interest in
expectancy, see the notes to the last definition. Under the
Succession Duty Act, 1853, s. 34, questions have arisen whether
a terminable charge is an incumbrance.

(1) The expression '' j)^C)perty passing on the death "
includes property passing either immediately
on the death or after any interval, either
certainly or contingently, and either originally
or by way of substitutive limitation, and the
expression " on the death " includes "at a
period ascertainable only by reference to the
death."

Either immediately, &c. See note to sect. 2 (1) (b), (p. 6,
sup)ra), " Property in which the deceased, &c."

(m) The expression " the Commissioners " means the
Commissioners of Inland Revenue.

(n) The expression "Inland He venue affidavit " means
an affidavit made under the enactments speci-

57 & 58 Vict. c. 30. 95

fied in the Second Schedule to this Act with § ^^»
the account and schedule annexed thereto,
(o) The expression " prescribed " means prescribed
by the Commissioners.

(2.) For the purposes of this Part of this Act —
(a) A person shall be deemed competent to dispose of
property if he has such an estate or interest
therein or such general power as would, if he
were sui juris^ enable him to dispose of the
property, including a tenant in tail whether
in possession or not ; and the expression
" general power " includes every power or
authority enabling the donee or other holder
thereof to appoint or dispose of property as he
thinks fit, whether exerciseable by instrument
inter vivos or by will, or both, but exclusive of
any power exerciseable in a fiduciary capacity
under a disposition not made by himself, or
exerciseable as tenant for life under the
Settled Land Act, 1882, or as mortgagee :
See note on sect. 2 (1) (a), (p. 5, supra).

Tenant in tail, whether in possession or not. As to the

position of a tenant in tail in remainder, see sect. 5 (3), p. 26,
supra.

General power . . . enabling the donee. Upon the whole
it is thought that a person having jointly with some other
person a general power to appoint property, is not competent to
dispose of the property within the meaning of this definition.

Example. — Property is limited to such uses as A. and B. shall
jointly appoint, and subject thereto to the use of A. for life,
with remainder to the use of B. for life. It is thought that A.
is not competent to dispose of the property. It is conceived
that the following sub-clause (b) has no connection with sub-
clause (a).

Exerciseable. The power of appointment need not have
been exercised.

Tinder a disposition not made by himself. Property held

by the deceased as trustee, if held under a disposition made by
himself within twelve months of his death, is liable to estate
duty, but is not so liable if held under a disposition made by

S6 DEATH DUTIES (eNGLAND).

§ 22. the deceased more than twelve months before his death, where

■ the possession and enjoyment of the property was bo7id fide

assumed by the beneficiary immediately upon the creation of
the trust, and thenceforward retained to the entire exclusion of
the deceased, or of any benefit to him by contract or otherwise.
(Sect. 2 (1), (c), and (3), pp. 8 & 15, supra.) It would appear,
however, that property settled by the deceased on another
person more than twelve months before the deceased's death,
would be liable to duty on the deceased's death if the deceased
had a power of sale as trustee under the settlement. If this is
the true interpretation of the Act, it will be extremely dangerous
in the future for any settlor to be trustee of the settled property.

(b) A disposition taking effect out of the interest of

the deceased person shall be deemed to have
been made by him, whether the concurrence
of any other person was or was not required :

(See sect. 7 (1), (a), p. 34, supra ; and see note, sub-clause (a),
" General power . . . enabling the donee.")

It may possibly be said that the effect of this sub-clause is to
put a person, having a power of appointment jointly with some
other person, in the same position as if he were the sole donee of
the power; but, upon the whole, it is submitted that such a
construction would not prevail.

charge on property shall be deemed to be
property of which he has power to disjDOse.

(3.) This Part of this Act shall apply to property in
which the wife or husband of the deceased takes an
estate in dower or by the courtesy or any other like
estate, in like manner as it applies to property settled
by the will of the deceased.

Estate in dower. I.e. the one-third of the rents and profits
to which a widow becomes, on the death of her husband, entitled
of and in the real estate undisposed of by him.

Estate by the courtesy. I.e. the estate for life to which a
husband becomes entitled on his wife's death of and in the real
estates to which she was entitled in fee simple or fee tail, pro-
vided he has had issue by her born alive capable of inheriting
the estates.

Any other like estate. E.g. free bench.
Settled by the will. See sect. 5, p. 20, supra, and the
^examples there given.

57 & 58 Vict. c. 30. 87

§23.

ApjjUcation to Scotland.

23. In the application of this Part of, this Act to Application of
Scotland unless the context otherwise requires : — Scotland.

(1.) The Court of Session shall be substituted for the
High Court.

(2.) " Sheriff court '' shall be substituted for "county
court."

(3.) " Confirmation " shall be substituted for " repre-
sentation."

(4.) The expression " receiver of the property and of
the rents and profits thereof," means a judicial
factor upon the property.

(5.) The expression "Inland Revenue affidavit,"
means the inventory of the personal estate of
a deceased now required by law, and includes
an additional inventory.

(6.) The expression " on delivering the Inland
Revenue affidavit " means on exhibiting and
recording a duly stamped inventory as pro-
vided by section thirty-eight of the Act of the
forty-eighth year of the reign of King Greorge
the Third, chapter one hundred and forty-
nine.

(7.) Section thirty-four of the Customs and Inland
Revenue Act, 1881, shall be substituted for
section thirty-three of that Act, and the Acts
referred to in such section thirty-four shall
extend to an estate of a gross value not ex-
ceeding five hundred pounds, and an applica-
tion under the said Acts may be made to any
commissary clerk, and any commissary clerk
shall affix the seal of the Court to any repre-
sentation granted in England or Ireland upon
the same being sent to him for that purpose,
enclosing a fee of two shillings and sixpence.

DEATH DUTIES (sCOTLANd).

§ S3. (8.) The expression " personal property " means

moveable property.

(9.) The expression " real property " includes herit-
able property.

(10.) The expression "incumbrance" includes any
heritable security, or other debt or payment
secured upon heritage.

(11.) The expression "executor" means every person
who as executor, nearest of kin, or creditor, or
otherwise, intromits with or enters upon the
possession or management of any personal
property of a deceased person.

(12.) The property comprised in any special assigna-
tion or disposition taking effect on death shall
be deemed to pass on death within the mean-
ing of this Act.

(13.) The expression "trustee" includes a tutor,
curator, and judicial factor.

(14.) The expression "settled property" shaU not
include property held under entail.

(15.) An institute or heir of entail in possession of
an entailed estate shall, whether sui juris or
not, be deemed for the purposes of this Act to
be a person competent to dispose of such
estate.

(16.) Where an entailed estate passes on the death
of the deceased to an institute or heir of entail,
who is not entitled to disentail such estate
without either obtaining the consent of one or
more subsequent heirs of entail or having the
consent of such one or more subsequent heirs
valued and dispensed with. Settlement estate
duty as well as estate duty shall be paid in
respect of such estate, but neither estate duty
nor Settlement estate duty shall be payable
again in respect of such estate, until such

57 & 58 Vict. c. 30. 89

estate is disentailed, or until an heir of entail § ^^*
to whom it passes on or subsequent to the
death of the institute or heir first mentioned,
and who is entitled to disentail it without
obtaining the consent of any subsequent heir or
heirs or having the consent of any subsequent
heir or heirs valued and dispensed with, dies.
(17.) Where an institute or heir of entail in posses-
sion of an entailed estate, who is not entitled
to disentail such estate without either obtain-
ing the consent of one or more subsequent
heirs of entail or having the consent of such
one or more subsequent heirs valued and dis-
pensed with, has paid estate duty in respect
of such estate, and afterwards disentails such
estate, he shall be entitled to deduct from the
value in money of the expectancy or interest
in such estate of such one or more subsequent
heirs, payable by him to them in respect of
their consents having been granted or dis-
pensed with, a proper rateable part of the
estate duty paid by him as aforesaid.
(18.) Where any person who pays estate duty on any
property, and in whom the property is not
vested, is by this Act authorized to raise such
duty by the sale or mortgage of that property,
or any part thereof, it shall be competent for
such person to apply to the Court of Session —
(a) for an order of sale of the property or part
of it, and in the event of the Court granting
such order, it shall provide for the payment
out of the price of the amount of the estate
duty which has been paid by such person,
and the Court shall thereafter make such
order as to the disposal of the surplus, if
any, of the price, by way of investment or
otherwise, as to the Court shall seem proper;

90 DEATH DUTIES (SCOTLAND ).

§ ^-^* the Court may in such order specify the

time and place at which, the person by
whom, and the advertisement or notice after
which the sale shall be made, and may ordain
the person in whom the property is vested
to grant a disposition thereof in favour of
the purchaser, and if the person in whom
the property is vested refuses or fails to do
so, the Court shall grant authority to the
clerk of Court to execute such disposi-
tion, and such disposition so executed shall
be as valid as if it had been executed by
the person in whom the property is vested ;
or
(b) for an order ordaining the person in whom
the property is vested to grant a bond and
disposition in security over the property in
favour of the person who has paid the estate
duty, for the amount of the said duty, and
if the person in whom the property is vested
refuses, or fails to do so, the Court shall
grant authority to the clerk of Court to
execute such a bond and disposition in
security, and such bond and disposition in
security so executed shall be as valid as if
it had been executed by the person in whom
the property is vested, and shall be a first
charge upon the property after any debt or
incumbrance for which an allowance is
directed to be made under this Act in
determining the value of the property for
the purpose of estate duty ;
Provided also that summary diligence shall not
be competent thereupon, and that nothing
herein contained shall make the duty to be
recovered by the methods of these sub-sec-
tions (a) and (b) recoverable at any earlier

57 & 58 Vict. c. 30. 91

time than if it had been recovered by direct § 23.
action against the person ultimately liable for
the duty.
(19.) This Part of this Act shall apply to property
in which the wife or husband of the deceased
takes an estate of terce or courtesy or any
other like estate in like manner as it applies
to property settled by the will of the deceased.

Commencement.

24. This Part of this Act shall come into operation Commence-
on the expiration of the first day of August one of Act.
thousand eight hundred and ninety four, in this Part of
this Act referred to as the commencement of this Part
of this Act.

Short Title,

42. This Act may be cited as the Finance Act, 1894. Short title.

SCHEDULES.

FIEST SCHEDULE.
Existing Duties referred to.

1. The stamp duties imposed by the Customs and Sections i
Inland Eevenue Act, 1881, on the affidavit to be re- 44 & 45 Vict,
quired and received from the person applying for probate ^' ^'^'

or letters of administration in England or Ireland, or
on the inventory to be exhibited and recorded in
Scotland.

2. The stamp duties imposed by section 38 of the 52 & 53 Vict.
Customs and Inland Eevenue Act, 1881, as amended °'

and extended by section 11 of the Customs and Inland
Eevenue Act, 1889, on the value of personal or move-
able property to be included in accounts thereby directed
to be delivered.

1st
Sched.

51 & 52 Yict.
c. 8.

DEATH DUTIES (eNGLAND).

3. The additional succession duties imposed by sec-
tion 21 of the Customs and Inland Eevenue Act, 1888.

4. The temporary estate duties imposed by sections 5
and 6 of the Customs and Inland Eevenue Act, 1889.,

6 . The duty at the rate of one pound per cent, which
would by virtue of the Acts in force relating to legacy
duty or succession duty have been payable under the
will or intestacy of the deceased, or under his disposition
or any devolution from him under which respectively
estate duty has been paid, or under any other disposi-
tion under which estate duty has been paid.

See 7iote to sect. 1, " The existing duties," (p. 4, supra).

SECOND SCHEDULE.
Acts referred to.

Session and Chapter.

55 Geo. 3, c. 184
66 Geo. 3, c. 56 . .

43 Vict. c. 14

44 & 45 Vict. c. 12.

Title or Short Title.

The Stamp Act, 1815

An Act the title of which begins
with the words '' An Act to re-
peal the several stamp duties"
and ends with the words
" managing the said duties."

The Customs and Inland Revenue
Act, 1880.

The Customs and Inland Revenue
Act, 1881.

Section referred to.

Section thirty- eight.

Section one hundred and
seventeen.

Section ten.

Sections twenty-nine and
thirty- two.

The 38th section of 55 Geo. 3, c. 184, is as follows: —
" 38. And be it further enacted that from and after the expi-
ration of three calendar months from the passing of this Act, no
Ecclesiastical Court or person shall grant probate of the will or
letters of administration of the estate and effects of any person
deceased, without first requiring and receiving from the person
or persons applying for the probate or letters of administration,
or from some other competent person or persons, an affidavit, or
solemn affirmation in the case of Quakers, that the estate and

57 & 58 Vict. c. 30. 93

effects of the deceased for or in respect of wMcli the probate or Slid
letters of administration is or are to be granted, exclusive of Sched.

what the deceased shall have been possessed of or entitled to as -1—

a trustee for any other person or persons, and not beneficially,
but including the leasehold estates for years of the deceased,
■whether absolute or determinable on lives, if any, and without
deducting anything on account of the debts due and owing from
the deceased, are under the value of a certain sum to be therein
specified, to the best of the deponent's or affirmant's knowledge,
information, and belief, in order that the proper and full stamp
duty may be paid on such probate or letters of administration ;
which affidavit or affirmation shall be made before the surrogate
or other person who shall administer the usual oath for the due
administration of the estate and effects of the deceased."

The 117th section of oG Geo. 3, c. 56, is as follows: — "And
be it further enacted that from and after the commencement of
this Act, no Ecclesiastical Court or jurisdiction in Ireland shall
grant probate of the will or letters of administration of the estate
and effects of any person deceased without first requiring and
receiving from the person or persons applying for the probate
or letters of administration, or from some other competent per-
son or persons, an affidavit, or solemn affirmation in the case of
Quakers, in the form contained in the schedule hereunto annexed,
that the estate and effects of the deceased for or in respect of
which the probate or letters of administration is or are to be
granted are under the value of a certain sum, to be specified in
such affidavit to the best of the deponent's or affirmant's know-
ledge, information and belief, and according to the account to
be annexed to such affidavit, according to which sum the stamp
duty shall be ascertained which shall be then required on such
probate or letters of administration, which affidavit or affirmation
shall be made before the surrogate or other person who shall
administer the usual oath for the due administration of the
estate and effects of the deceased."

The 10th section of 43 Vict. c. 14, is as follows : —

" 10. — (1) Together with the affidavit to be required and
received from the person applying for a probate or letters of
administration in England, in conformity with section thirty-
eight of the Act passed in the fifty-fifth year of the reign of
King George the Third, chapter one hundred and eighty-four,
there shall be delivered an account of the particulars of the
personal estate for or in respect of which the probate or letters
of administration is or are to be granted, and of the estimated
value of such particulars.

" (2) The account so delivered shall be transmitted to the
Commissioners of Inland Eevenue, together with the documents
mentioned in section ninety-three of the Act passed in the
twentieth and twenty-first years of her Majesty's reign, chapter
seventy- seven.

"(3) A like account shall be annexed to the affidavit to be
required and received from the person applying for a probate or
letters of administration in Ireland, in conformity with section
one hundred and seventeen of the Act passed in the fifty-sixth
year of the reign of King George the Third, chapter fifty-six,

94 DEATH DUTIES (eNGLANd).

dud. and such account sliall be in lieu of, and in substitution for, the
Sclied. account annexed to the form of affidavit set forth in Part III. of

the Schedule to the said Act.

" (4) Every account to be delivered in pursuance of this section
shall be in accordance with such form as may be prescribed by
the Commissioners of Her Majesty's Treasury."

The 29th and 32nd sections of 44 & 45 Yict. c. 12, are as
follows : —

" 29. The affidavit to be required or received from any person
applying for probate or letters of administration in England or
Ireland shall extend to the verification of the account of the
estate and effects, or to the verification of such account and the
schedule of debts and funeral expenses, as the case may be,
and shall be in accordance with such form as may be prescribed
by the Commissioners of Her Majesty's Treasury; and the
Commissioners of Inland Eevenue shall provide forms of affi-
davit stamped to denote the duties payable under this Act."

*' 32. If at any time it shall be discovered that the personal
estate and effects of the deceased were, at the time of the grant
of probate or letters of administration, of greater value than
the value mentioned in the certificate, or that any deduction
for debts or funeral expenses was made erroneously, the person
acting in the administration of such estate and effects shall,
within six months after the discovery, deliver a further affidaTit
with an account to the Commissioners of Inland Eevenue, duly
stamped for the amount which, with the duty (if any) previously
paid on an affidavit in respect of such estate and effects, shall
be sufficient to cover the duty chargeable according to the true
value thereof, and shall at the same time pay to the said Com-
missioners interest upon such amount at the rate of five pounds
per centum per annum from the date of the grant, or from such
subsequent date as the said Commissioners may, in the circum-
stances, think proper."

APPENDIX.

EXTEACT FKOM THE

* Speech of the Right Son. Sir William Harcoiirt {Chan-
cellor of the Exchequer), on making the Financial
Statement, Uth April, 1894.

The Committee will anticipate that tlie first subject to
•wMcli I shall refer is the Death Duties. Even without the
pressure of immediate necessity, it would be a mere act
of financial justice to redress inequalities which have too
long existed. It is difiicult to understand how the intoler-
able injustice of the relations between the taxation of
various kinds of property under the Death Duties has been
so long endured. We are bound to undertake the solution
of this question by the pledge given in the important
Resolution moved by the Eight Hon. Member for Mid-
lothian on the Second E-eading of the Budget Bill in 1888.
I will remind the Committee of that Eesolution. It was —

" That, in the opinion of this House, after Parliament shall have
made the appropriations it may deem just in the relief of
local rates, the duties accruing upon death shall be so fixed
as to equalise the charge upon real and personal property
respectively."

I have not time to enter on a lengthened disquisition on
the history of those duties and their anomalous incidence.
In a general way they are familiar to most people. A sort
of defence has been set up that there was a compensation
to be found in the heavier burden to which particular
kinds of property were subject under other taxes. But
these sorts of compensation are unsound in principle and
mischievous in practice. It is far better to place both
taxes on a fair and equal basis than to attempt to counter-
balance one inequality by the creation of another. The
whole subject is admittedly difficult and complicated. The
Death Duties have grown up piecemeal, and bear traces of
their fragmentary origin. They have never been estab-
lished upon any general principles, and they present an

* Printed by permission.

95 DEATH DUTIES (eNGLANd).

extraordinary specimen of tessellated legislation. Various
endeavours have been made at different times to redress
some of their inequalities. Here a patch and there a
patch, but each successive modification has only left con-
fusion worse confounded. In the fraction of time which I
can devote to this subject I can only present to the
Committee a very faint outline.

Existing Death Duties.
There exist at present five duties — the Probate Duti/y
the Account Duty, the Estate Duty (which, however, was
only imposed for seven years, and expires in 1896), the
Legacy Duty, and the Succession Duty. The Probate,
Account, and the Legacy Duties affect personalty ; the
Estate and Succession Duties affect both personalty and
realty. But there is a more important distinction —
namely, the point of view from which these duties are
levied. The difference may be illustrated by the examples
of the Probate and the Legacy Duties. Probate is a duty
imposed on the whole corpus of the personal property
which passes to a man's executor or administrator ut his
death. The Account Duty and the Estate Duty are similar
to it in that they deal with the corpus of the estates to
which they apply, and that the duty is charged on the
amount of the capital passing, irrespective of its destina-
tion. Eor shortness, I will call these the A duty class.
The principle of this A duty is to look solely at the amount
of property passing, without regard to its subsequent
destination or distribution. I now turn to what I will call
the B class of duty. Of this the Legacy Duty is an
example. The B class of duty is an additional tax imposed
on the interest which a man derives from property left to
him or devolving upon him. This duty regards not the
amount of the estate which the deceased leaves, but the
amount of interest which the successor takes, and the rate
of it is determined by his relationship to the man from
whom he takes it — a distinction which is not made in the
case of the A duty. This is the general character of the
Legacy and Succession Duties. The point of view of the
A duty class is the amount of property left. The point of
view of the B duty class is the interest of the individual
successor and his relationship to the predecessors. It is
obvious that, accepting these principles, these duties should
severally be applied with equality to all classes of pro-
perty.

Personalty and Eealty.

But it is not so. The A duty is imposed, in the shape of
Probate Duty, on personalty passing by will or intestacy,

APPENDIX. 97

and, in the shape of Account Duty, on personalty included
in voluntary settlements and some other things, but it is
not imposed on personalty included in other forms of settle-
ment, or on any form of realty, settled or unsettled. In
the case of the B duty, the principle is not equally applied.
There is an unfair distinction between personalty and
realty. In the case of personalty the duty is in all cases
charged according to the interest of the beneficiary — that
is, if he takes a life interest, he pays on the value of that
interest ; whereas, if he takes an absolute interest, he pays
on the principal value of what he takes. But, in the case
of realty, the beneficiary pays in all cases only on his life
interest, even when he takes an absolute interest — fee-
simple — in property. These inequalities are not denied.
The right hon. gentleman, the Member for St. George's,
Hanover Square, attempted in some degree to redress
them. He somewhat raised the B duty on realty, in order
to compensate its exemption from duty A. He imposed
also an Estate Duty, the object of which he thus de-
scribed : —

' * The new duty will be charged similarly on both realty and per-
sonalty— that is to say, on the capital value, when the property
passes absolutely."

I entirely accept this principle, and what we desire is to
carry it out to its legitimate conclusion. I have not time
now to discuss the right hon. gentleman's plans in detail ;
but they have failed of their avowed intention — they have
not redressed the inequality, either in respect of settled
property or of realty. Eealty is not taxed upon the prin-
cipal value ; it is taxed on the value of the life interest of
the successor. The basis of calculation is, not the principal
value of the land, but the annual rental. It is, in effect, a
tax upon rent, which is a wholly different thing. I have
here a table which will illustrate this matter by concrete
instances better than any elaborate statement. I will take
the case of a property of the market value of 15,000^. If
it is what is called free personal property, or anything else
not settled, that property will pay 3 per cent. Probate
Duty, 450/., and Estate Duty, T per cent., 150/., making
600/. Supposing the same property is under settlement, it
will pay Succession Duty, 225/. ; Estate Duty, 150/. ; or a
total of 375/. instead of 600/. If it were divided into two
properties, it would only pay 225/. instead of 600/. Now,
let us take the case of land, or real property, of the market
value of 15,000/. I take the age of the successor at 35.
The net rental at A^ per cent, is 675/. ; the Succession

F. H

98 DEATH DUTIES (eNGLANd).

Duty would be 139/. 10s., the Estate Duty 130Z. lOs., or a
total of 2701. as against 600/., or about one-balf. If there
were two successors and no personalty, there would be no
Estate Duty, and the charge would be only 139/. IO5.
instead of 600/. I do not go into the figures, but upon
collaterals generally the charge in the case of realty will
not be much more than half that on free personalty, and,
when there are two successors to realty alone, less than
one -half.

Lea-Seholds and Freeholds.

There is a great distinction between leasehold and free-
hold property. The one — that is, the leasehold — is taxed
for the purpose of probate as personal property, and the
other — the freehold — is exempted from probate as realty.
Leaseholds are always diminishing in value : but freeholds,
on the other hand, are generally increasing in value. I am
afraid that there are some freeholds that are not increasing
in value, but there are a good many that are. I should think
if you took some of the ground-rent proprietors in London
they would not tell you that their receipts were decreasing.
Now, I will suppose a person (A.), who owns two sets of
trade premises, each worth 200/. per annum net annual
value, the one, a leasehold, having, say, sixty years
to run, and the other a freehold. The properties are
rated equally for local purposes ; but mark the differ-
ence of their contribution under the Death Duties to
Imperial taxation. A., the father, leaves the leasehold
to his son B., who pays probate at 3 per cent, on
3,000/., which is fifteen years' purchase. The amount
of probate he will pay is 90/. He leaves the freehold to
another son, C. The freehold at twenty j^ears' purchase is
worth 4,000/., but the "tax in this case being under the
Succession Duty is only valued on the Hfe interest.
Assuming C. to be forty-four (the average age of suc-
cessors), his life interest in the property, of 200/. net
annual value, would be 2,800/., and on that he would pay
1^ per cent., or 42/. Therefore the leasehold, which is
really worth 3,000/., pays 90/., while the freehold, which
is worth 4,000/., only pays 42/. It ought at equal rates to
pay 120/. That is to say, the leasehold pays nearly three
times as much as the freehold. Now, is it possible to
justify a system of taxation of that kind? I beg leave to
call the attention of people interested in urban populations
to this question of the position of the leaseholder and the
freeholderi

APPENDIX.

Peoposed Alteration of the Law.

TliG object of the proposal the Government have to make
is to effect completely what the right hon. gentleman oppo-
site (Mr. Goschen) avowed to be his object — to make as
complete an assimilation of the charges on all kinds of
property in respect of the Death Duties as the nature of the
case permits.

Assimilation of Duties of the A Class.

The proposal of the Government, therefore, is this : "We
propose to clear the ground by abolishing or merging the
present Probate Dutj^, the Account Duty, the Estate Duty,
and the addition made by the right hon. gentleman oppo-
site to the Succession Duty and to start afresh. We con-
stitute in their place a single duty of the A class, of which
probate is the type, which we propose to call the Estate
Duty. We borrow the right hon. gentleman's principle,
and we borrow his name. We carry out his principle, how-
ever, to its legitimate conclusion. The Estate Duty will
be charged according to the principal value of all property,
whether real or personal, settled or unsettled, which passes
on the death of any person, whether by the disposition of
the deceased or by a settlement made by others. That is
the broad and general principle. In this duty regard will
only be had to the sum total of the property passing, and
not at all to the persons to whom or the shares in which it
passes. The governing principle is this : Upon the devolu-
tion of property of all descriptions the State takes its share
first — before any of the successors in title or beneficiaries.
The reason on which this is founded is plain. The title of
the State to a share in the accumulated property of the
deceased is an anterior title to that of the interest to be
taken by those who are to share it. The State has the
first title upon the estate, and those who take afterwards
have a subsequent and subordinate title. Nature gives a
man no power over his earthly goods beyond the term of
his life. What power he possesses to prolong his will after
his death — the right of a dead hand to dispose of property
— is a pure creation of the law, and the State has the
right to prescribe the conditions and limitations under
which that power shall be exercised. The right to make
wills or settlements or successions is the creation of posi-
tive law. In case of default of disposition by intestacy, the
State settles the destination of the property under the
Statute of Distribution. It is most important to keep that
clearly in view. The objection is often taken that taxes
of this kind are so hard upon this person or that person,

100 DEATH DUTIES (eNGLANd).

but a duty like the Probate Duty, wbere property is be-
queathed by will, knows nothing of distinctions of persons
who are to be benefited by the will. We deduct the share
of the State, and then the persons interested take according
to their several shares. Suppose a man leaves property
amounting to 100,000/., the Probate Duty, which will now
be the Estate Duty, is deducted before anyone gets any-
thing. The deduction may be 4,000/. What really
belongs to the beneficiaries is not 100,000/., but 96,000/.,
and they never had a right to anything more. That is the
principle of the new Estate Duty. Those who laugh cannot
have read the most elementary books on political economy
and finance. The State is to take its share from the corpus
of the whole property passing on the death of the deceased,
of whatever kind or description that property may be.
That principle is so simple and so just. I never supposed
till this moment that that was a principle which anyone
disputed. It is a principle which has been laid down in
this House for a very long time, and it had been laid down
in every work that has ever professed to deal with political
economy. Therefore I was not prepared to argue it. I
have taken it as an axiom of finance. The real difiiculty
arises in the application of the principle.

Case of Eeal Property.

The difficulty arises from the complication of the Law of
Settlement, and the Law of Real Property, and likewise
from the nature of real property. As to free personalty,
you have to deal only with the executors, but in the case
of settlements, you must have recourse to trustees, and
you may often have to deal with the dispositions of persons
other than the deceased. Eeal property passes immediately
to the devisee or heir, and, when settled, presents the same
difficulties as those to which I have referred in the case of
settled property. That constitutes, no doubt, a difficulty
in regard to collection. The evils from which we suffer,
not only in this respect, but in all dispositions of property,
exist to a degree which makes the IJnited Kingdom the
most lawyer-ridden country in the world. These complica-
tions are the work of the astute and ingenious professors
of the law. They are the result of the accumulated
subtleties of conveyancing. They are expensive and unin-
telligible to everyone who is not well paid to understand
them. It is a difficult business to unravel and break
through all their cobwebs, but in principle there is no
reason why settled property should be favoured in com-
parison with unsettled property. Settlements may be good

APPENDIX. 101

things in some cases, but they are certainly very bad things
in others, and there is assuredly no reason why they should
be favoured by any fiscal exemptions. You cannot by
fiscal enactments alter the Law of Settlement, but you may
provide that settlements shall not be unduly favoured in
respect of taxation. To show again what a faithful dis-
ciple I am of the right hon. gentleman opposite, I should
like to read a sentence upon the subject of settlements from
his Budget Speech, 1889. He said —

" The whole theory of the Death Duties is that the State claims a
share in all property passing on death. If I may use a phrase of
legitimate exaggeration, a portion of the Death Duties is practically
evaded by settlement. From my point of view, every settlement if
not a fraud upon the Death Duties, at all events, makes a serious
inroad on what I may term the rights of the Chancellor of the
Exchequer."

I beg attention to what follows : —

" I do not feel sure that equity and analogy do not require that a
higher duty should be put upon settlements to compensate for the
heavy loss to the Death Duties which they bring about."

As regards real property, there is no reason why it should
be charged at a different rate from other property, why the
duty on it should be charged on a life interest when the
real interest taken is the fee simple, why it should be esti-
mated on an annuity, which in the case of the best classes
of property, such as ground rents, produces a sum far
below the principal value on which other property is
valued. This is one of the few countries in the world
where such a principle is adopted. I find in The Statisti-
cal Society's Journal^ Part 85, this statement : —

** Coming next to the question of this modification or mode of esti-
mating the value of real property, and the substitution of the actual
reaUsable value for the fictitious value obtained by multiplying the *

income by a given quantity, we find there are only two countries
besides France in which the assessment of Succession Duties on real
estate is based on the fictitious, and not the real, value. Those
countries are England and Belgium. In determining the value of
real estate in all other countries, the duty is levied on the realisable
value of the property."

I have forgotten to mention that, in taking principal value
as the basis of the tax, we reform a glaring injustice of
exempting property which has a high selling value, though
yielding little or no annual rent. There is the well-known
Lord Sefton's case, where there was property yielding no
rent at all, on the banks of the Mersey. Well, he paid no
Succession Duty upon that, and ver^' shortly afterwards
he sold the property for a very large sum. The Inland

102 DEATH DUTIES (eNGLAND).

Hevenue claimed Succession Duty upon what lie had re-
ceived, but the land had no annual value, and it therefore
paid nothing. This applies to the question of ground-
rents and ground values. You may have a ground rent
■which is very small, and yet you may sell that property
to-morrow for an immense sum of money. There is no
more difficulty in estimating the principal value of real
property than that of jewels or pictures. The real test is
what experienced persons estimate would be the fair
market value at the time and under the circumstances.
That real estate should not be treated on a more favour-
able footing than other property was laid down by Mr. Pitt
in 1795.

" In a war for the protection of property it was just and equitable
that property should bear the burden, and as it was in the nature of
things that landed property was the most permanent it was fit that
it should contribute accordingly."

That principle was rejected then by the House of Commons
of those days, but I venture to say that it will not be
rejected by the House of Commons of to-day. But, to
take a later example, the right hon. gentleman (Mr.
Goschen), in his able Report of 1871, stated that —

" Out of the total Imperial taxation, land in England paid, in
1868, 5-28 per cent, ; in France, 18-43 per cent. ; in Prussia, 11-39
percent.; in Belgium, 20-72 per cent. ; in Russia, 11-21 per cent.;
in Austria, 17*54: per cent. ; in Hungary, 32*30 per cent. ; and" (he
added) ' ' from these figures it is apparent to what a small extent the
taxation of land has been available for Imperial purposes in the United
Kingdom as compared with the whole of the Continent."

If it is urged, as is unfortunately true, that the value of
land has greatly fallen in this country, it will be remem-
bered that the charge will be the less in proportion to the
fall in value, and that land will, like other properties, only
be taxed on what it is worth and what it will fetch. One
difficulty we have to meet is one which would have been
remedied if the House of Lords had not rejected the Land
Transfer Bill introduced by the late Government in 1889,
by which land would have passed, like personal property,
to the hands of the executors. There may be more diffi-
culty in realising at once the tax on real property, and
regard should be had to this consideration, so long as in
the end the same amount is realised on real property as
that which is levied in other cases. The situation of settled
property will also require special treatment, but the charge
in the end should be the same. All these are questions of
the manner of collection, which will have to be dealt with
at a later date, and their difficulty, no doubt, is great ; but

APPENDIX.

I kave not time to enlarge on them now. We have done
our best to solve them ; and I have no doubt that, with the
assistance of the Committee, we shall be able to arrive at
some reasonable conclusion. So long as the equal con-
tribution of all classes of property is kept intact we have
a very open mind as to the method of effecting it. It is
very desirable and very important to interfere as little as
possible with the existing system of administering the law,
round which has grown up a great mass of established
decisions and practice. I have said that, whilst making
an equal charge on all kinds of property under the Estate
Duty, we accommodate the method of collection and pay-
ment to the different conditions of various kinds of pro-
perty. It would, obviously, be impossible to realise at
once the capital value of landed property in like manner
as in the case of Stocks or other personalty. "We continue,
therefore, the existing system of payment hy instalments ;
but, in order that the ultimate payment may be the same
as on other property, we charge interest on the money
remaining due until the whole is discharged. These in-
stalments will be a charge on the estate, and will not
lapse with the death of the person primarily liable to pay
them. In the case of settlement, when property is now
settled by will, probate is charged once on the corpus of
the property, and this payment covers all the limitations
of the settlement. It is felt that it would not be fair to
require a full payment on each devolution within the scope
of the settlement when the beneficiary takes only limited
interest, and thus treat a man with only a life interest on
the same footing as one who had the absolute disposal of
the estate. We now, therefore, propose to assimilate the
treatment of property under all kinds of settlements to that
now in force respecting settlements made by will. But, as
the single payment in respect of the whole settlement may
result in a diminished total produce of the tax, we propose
to levy an additional 1 per cent, on all property under
settlement to recoup this loss. I have, in fact, adopted
the right hon. gentleman's policy. I have sat at his feet
for some years, and have learned something from him.
In this manner we levy the same amount from the estate
as if it were left absolutely, but each beneficiary will con-
tribute according to the extent of his interest by the
reduction of his income resulting from the original diminu-
tion of the capital. In the case of realty, where the duty
will be payable in the first instance by the life tenant, he
will have the power to charge the amount of it on the pro-
perty. I do not propose, at the present moment, to argue
this question in detail. The proper time for that will be

103

104 DEATH DUTIES (eNGLAND).

when the Resolution relating to the Death Duties comes
separately under discussion. I have not found it necessary
to go into any elaborate calculations, such as those which
were discussed in the Debate of 1888, as to the relative
amount of various kinds of property and the charges upon
them. Our plan does not require any such calculation,
because it is proposed to place exactly the same charge on
every sort of property, of whatever kind it may be.

Sir M. Hicks-Beach: Will the right hon. gentleman
state the percentage ?

Sir W. Harcourt: I am coming to that directly. I
now come to a point in this matter which is of still greater
importance. Hitherto I have discussed the propriety of
bringing all kinds of property under the same tax — a tax
in the nature of the present Probata Duty. This we have
sought to accomplish. When we have collected all the
different heads of property passing at a man's death, and
aggregated them in one sum, the question arises, shall the
property be taxed at the same rate, whether it be great or
smaU?

Graduation of Duty.

Shall a property of 100,000^. not contribute on a higher
scale than a property of 1,000^. ; a property of 500,000/.
more than 100,000/. ; and 1,000,000/. more than 500,000/. ?
This raises in its simplest form the vital question of gradu-
ated taxation. To my mind, the principle if applied with
fairness and justice is a most equitable and politic principle.
Every writer on political economy and finance has laid
down the doctrine that taxation should be proportionate to
the ability to bear it of those on whom it is imposed. The
right hon. gentleman (Mr. Goschen) admitted, and indeed
proclaimed, these principles when he established the Estate
Duty. He stated —

'* On the whole, I think it will be generally recognised that it is the
men whose fortunes are considerable who pay least in proportion to
their aggregate income and property."

He proceeded to act to a limited extent on this principle
by imposing the Estate Duty on estates amounting to
10,000/,, and excepting all estates below that sum. I
pointed out at the time that this fact, and the principle
upon which it was propounded, contained the germ of
graduation. It was, in fact, the first rung of the ladder,
and we propose to ascend the scale. I read last week a

APPENDIX. 105

very able article in The Economist on this subject, wbicb.
pointed out bow this principle might be applied even on a
small scale. Mr. Pitt suggested that a man who could
afford to keep two carriages should be taxed on each a
higher rate than his neighbour who could only afford to
keep one. This system of graduation is in force in many of
our colonies. In Victoria an estate of 10,000/., to 20,000Z.
pays 4 per cent., rising by steps to estates of 100,000/., above
which 10 per cent, is paid. We propose a much more mode-
rate graduation, rising to 8 per cent, at 1,000,000/., or
double the existing maximum. I now propose to tell the
Committee how I intend to fix the graduation. On estates
exceeding 100/. and not exceeding 500/. the rate will be

1 per cent.; exceeding 500/. and not exceeding 1,000/.,

2 per cent., including in both cases Legacy and Succession
Duty ; exceeding 1,000/. and not exceeding 10,000/., 3 per
cent. ; exceeding 10,000/. and not exceeding 25,000/. 4 per
cent. ; exceeding 25,000/. and not exceeding 50,000/. Ah per
per cent. ; exceeding 50,000/. and not exceeding 75,000/.,
5 per cent. ; exceeding 75,000/. and not exceeding 100,000/.,
5^ per cent. ; exceeding 100,000/. and not exceeding
150,000/., 6 percent. ; exceeding 150,000/. and not exceed-
ing 250,000/., 6|- per cent. ; exceeding 250,000/. and not
exceeding 500,000/,, 7 per cent. ; exceeding 500,000/. and
not exceeding 1,000,000/., 7^ per cent.; over 1,000,000/.,
8 per cent. Properties below 500/. will pay 1 per cent,
instead of a minimum of 2 per cent, on personalty and of
1^ per cent, on realty as at present, but they will be
relieved from Legacy and Succession Duty, which, under
the consanguinity scale, may now render such properties
subject to a much higher charge. Properties between
500/. and 1,000/. will pay 2 per cent., but they will be
similarly relieved from Legacy and Succession Duty. The
305. payment below 300/. gross will cease. Properties of
capital value between 1,000/. and 25,000/. in free per-
sonalty will pay as they now do. It is above 25,000/. that
the new graduation will commence.

Proposed Changes in B Class of Duty.

I have yet to mention the changes which I propose to
make in the B class of duty, the duty which falls upon the
interest of the individual beneficiary, and is graduated ac-
cording to the degree of his relationship to the person from
whom he derives his interest. There are two duties of the
B class — Legacy and Succession Duty. They always used

106 DEATH DUTIES (eNGLANd).

to be — and now that the additional 1^ per cent. Succession
Duty is to be swept away and the Succession Duty on
lineals is merged in Estate Duty they once more will be —
identical in respect of the rates of duty. The ' ' consangui-
nity scale," as it is called, will be the same in either case.
But, in order to make them identical, it is necessary to re-
move— and I propose to remove — the ajiomaly by which
Succession Duty is in all cases, even where the successor
takes an absolute interest, charged only on his life interest,
and the further anomaly that Succession Duty is payable
by instalments free of interest, whereas Legacy Duty is
payable in one lump sum. In both these respects we pro-
pose to place Succession Duty on exactly the same footing
as Legacy Duty. It will in future be charged upon the
capital value of the property where the successor takes
absolutely. Though stiU payable in instalments, these in-
stalments will be charged with interest, thus rendering
them really equivalent to the lump sum paid at once under
Legacy Duty. With these changes Legacy and Succession
Duties — though kept up nominally as separate duties for
the sake of administrative convenience and on account of
the body of law and legal decisions which has grown up
around them — will be identical in their incidence. There
will, in fact, be only one B duty, equal in its incidence on
all kinds of property, real and personal, settled and un-
settled, just as there will be one A duty, the Estate Duty,
instead of three, and that one duty likewise equal in its
incidence all round. There will be two duties instead of
five duties, and two equal duties in the place of the chaotic
inequality of incidence which now prevails.

INDEX

ABERGAVENNY,

lands and chattels settled on Earldom of, how dealt with, 28.

ACCOUNT DUTY,

when paid or payable on settled property, estate duty not pay-
able, 2, 5.
when still payable, 5.

ACCOUNTABLE

for estate duty, executor, when, 29.

purchaser for value without notice is not, 55.
who are, 30, 49, 50.

ACCOUNTS,

delivery of, by persons accountable for duty, 49.

furnished by executor with Inland Revenue affidavit, 29, 48.

of property, for duty on which executor is not liable, 32.

person paying rateable part of estate duty bound by, when, 68.

time for delivery of, 31, 50.

verification of, 32, 50, 54.

ACT OF PARLIAMENT,

lands and chattels settled by, how dealt with, 27.

AJD VALOREM

stamp to be deducted from Settlement estate duty, 27.

ADDITIONAL SUCCESSION DUTY,

under the Customs and Inland Revenue Act, 1888. See Stro-
CESSiON Duty.

ADVOWSONS,

exempted from estate duty, when, 3, 70.

AFFIDAVIT,

corrective, 30.

Inland Revenue, 28—30, 48, 84, 92.

provisions as to, 54.

AGENTS,

may be called on to give information to Commissioners, 5L
not accountable for estate duty, 49, 50.

108 INDEX.

AGaREGATION, 17.

can only take place once on same death, 36, 45.
exemptions from. See Exemptions.
for determining rate of estate duty, 18.

none in case of property devolving as an estate by itself, 18, 71.
not chargeable with estate duty, 18.
under 1,000/. when, 71.
of benefits reserved to immediate family, how and when efEected,

19.
of reversions, the duty on which has been commuted, 18, 66.

sold or mortgaged before the 1st of August, 1894,
queer e, 81.

AGRICULTURAL PROPERTY,

deduction for expenses of management in case of, 42.

definition of, 40, S3.

includes what buildings, 83.

outgoings to be deducted from value of, 41.

rates to be deducted from value of, 41.

rules for ascertaining value of, 40.

value, for the purpose of succession duty, 75.

ALLOWANCES. See Deductions.

ANNUAL VALUE

of agricultural property, how ascertained, 41.

ANNUITY,

cesser of, does not create a liability to duty, when, 7, 16, 17.

deduction allowed if granted for partial consideration, 16.

Indian Government, exempted from estate duty, when, 3, 69.

jointure. See Jointuee.

pur autre vie, 7 .

rent-charge. See Rent-Chaege.

survivorship, exempted from estate duty, when, 3, 14, 69.

liable to estate duty, when, 13.
value of property passing on cesser of, 14, 43, 44.

APPEAL,

costs of, 61.

from Commissioners to County Court, 59.

to High Court, 59.
from County Court, 61.

High Court only by leave, 59, 61.

APPORTIONMENT

of estate duty, when, 67.

ARBITRATION,

Court may refer valuation to, when, 62.

ASSETS,^

liability of executor limited to amount received, 48.

BAILIFFS,

not accountable for estate duty, 49, 50.

BANK NOTES,

subject of donatio mortis causa, 9,

INDEX. IW

BANKER

may be called on to give information to Commissioners, 51.

BANKERS' DEPOSIT NOTE,

subject of donatio mortis causa, 9,

BENEFICIARY,

accountable for estate duty, when, 30, 49.

BENEFIT ACCRUING OR ARISING,

value of, in case of limited interests, 7.

BILLS OF EXCHANGE,

subject of donatio mortis causa, 9.

BISHOP,

estate duty not payable on emoluments of, 8.

BONDS,

subject of donatio mortis causa, 9.

BOOKS,

duty not payable on gifts of, when, 3, 69.

BRITISH POSSESSION. See Colonial and Foeeign.
no proceedings to be taken to recover estate duty in, 78.

BUILDINGS,

included in agricultural property, what, 83.

CAPITAL MONEY

under Settled Land Act, application of, for estate duty, 59.

CERTIFICATE,

of discharge effectual in case of fraud, &c., when, 63, 64.

ineffectual in case of fraud, &c., when, 63.

may be given, when, 63.

must be given, when, 62.

to be given for separate items of property, 63.

when estate duty commuted, 66.

when death duties commuted, 66.
of estate duty, 57.

evidence of charge, 57.

repayment of overpaid duty on production of, 57.
of valuation, separate for different classes of property, 52.
on probate and letters of administration, 55.
provisions as to, 54.

CESSER,

of annuities. See Annuity.

of limited interests, value of property passing on, 7, 43, 44.

CHANCELLOR OF THE EXCHEQUER,

speech of, 95.

110 INDEX.

CHAEaE,

certificate of estate duty evidence of, 57.
estate duty is a, on what property, 56.
estate duty is a, subject to what incumbrances, 56.
of estate duty in favour of limited owner paying, 59.
on Colonial property for estate duty, none, 78.
person is competent to dispose of money which he has a general
power to, 6, 86.

CHARITY,

estate duty not payable on annuities, pensions, &c., of, 3, 8.

CHEQUES,

subject of donatio mortis causd, 9.

CHIEF EENTS,

deducted in case of agricultural property, 41.

CHURCH PATRONAGES,

exempted from estate duty, when, 3, 70.

CIVIL

officer, estate duty not payable on arrears of pay or pension of,

when, 46.
servant, estate duty not payable on arrears of pay or pension of,

when, 46.

CLASSES

of property, separate valuations for different, 52.

COLLECTION

of estate duty, 28, 45.

COLLEGE,

fellow of, estate duty not charged on emoluments of, 8.
master of, estate duty not charged on emoluments of, 8.
qucere whether estate duty may be remitted on gifts to, 70

COLONIAL. See Foreign.

property, deduction of duty payable on, when allowed, 39, 78.
estate duty not a charge on, 56, 78.
liable to estate duty, when, 14, 15.
what, treated as situate in United Kingdom, 78.

COMMENCEMENT OF ACT, 2, 91.

COMMISSIONERS,

have discretion to commute duty, 65.
compound duty, 66.
inspection by, for purposes of valuation, 44.
may require statement of property, from whom, 50.

COMMITTEE,

accountable for duty, when, 49.

COMMUTATION,

of estate duty on interest in expectancy, 65.

INDEX. Ill

COMPETENT TO DISPOSE,

definition of, 85.

estate duty charged on settled property on death of person, 22.

estate duty payable on, when, 2, 3.

not, 2, 3.
mortgagee not, 6, 85.
of what property a person is, 5, 85.
person having a general power of appointment is, 5, 86.
succession duty charged on principal value when successor is, 75.
tenant for life not, 6, 85.
tenant in tail in possession is, 5, 85.

in remainder, qucere, 6, 26.
trustee, when deemed, 5, 85.

COMPOSITION,

of death duties, 66.

CONSIDERATION,

debts and incumbrances to be allowed, must be for full, 36.
full, what is, 17, 36.
in money or money's worth, 17, 36.
marriage not a valuable, 17.

of marriage, debts and incumbrances in, may bear rateable
amount of duty, 24, 36.
no allowance for debts and incumbrances created
in, 35.

CORPORATION SOLE,

estate duty not payable on emoluments of, 3, 8.

COSTS,

of appeal, 61.

of valuation by Commissioners, 44.

COUNTY COUNCIL,

estate duty may be remitted on gifts to, when, 69.
to appoint valuers, 62.

COUNTY COURT,

appeals to, 61.

applications to, as to apportionment of duty, 68.

COURTESY,

estate by the, treated as settled, 25, 86.

CROWN DEBTORS,

persons accountable for duty are, 45.

DEAN,

estate duty not payable on emoluments of, 8.

DEATH,

meaning of, on the, 7, 84.

property passing on. See Peopeety passing on Death.

DEATH DUTIES,
composition of, 66.
definition, 66.
in. case of death before 1st August, 1894 . .80.

Ii2 INDEX.

DEBTS,

due to foreign creditors may be deducted, when, 35.

foreign, when and how allowed, 37, 38.

incurred in consideration of marriage cannot be deducted, 35.

but may bear rateable part of duty, 36.
may be deducted, when, 35.
must have been for deceased's own use and benefit, 36.

full consideration in money or money's worth,
36.
take effect out of deceased's interest, 36.
not deducted, if a right of reimbursement exists, 37.

DECEASED PERSON,

definition of, 82.

DECLARATION OF TRUST,

gift may be by, 8, 10.

DEDUCTIONS,

ad valorem stamp to be a deduction from Settlement estate duty,

27.
allowed in cases of purchases for partial value, 16.

on determination of leases and annuities for lives for
partial value, 16.

under Income Tax Acts for agricultural property, 41.

under Succession Duty Act, 41.
appeal as to, 60.

for duty payable in foreign country, 39.

for expenses of management in case of agricultural property, 42.
for expense of realizing foreign property, 39.
for debts and incumbrances, 34. 8ee Debts and Incumbeances.
for foreign debts, when, 37, 38.
from estate duty, of duty on Colonial property, when allowed,

39, 78.
jointures and portions, when not allowed as, 25.

DELIVERY

of account, time for, 32, 50.

DISCHARGE,

certificate of, effectual in case fraud, when, 63, 64.

when not, 63, 64.
given for separate items of property, 63.
may be given, when, 63.
must be given, when, 62.
when estate duty commuted, 65.
when death duties commuted, ^^.

DISCOUNT,

what allowed on succession duty when successor competent to
dispose, 76.

DOMICIL,

estate duty payable on foreign personalty if deceased had a
British, 14.

INDEX. 113

DONATIO MORTIS CAUSA,

estate duty payable in respect of, 8.
property which may be subject of, 9.
requisite of, 9.
what is, 9.

DONOR,

must be excluded from all benefit of gift, 8, 10.

DOWER,

estate in, treated as settled, 25, 86.

DUTIES,

superseded by estate duty, 4.
to what extent, 5, 80.

DUTY,

in foreign country, deduction of, from property, 39.

ENFRANCHISEMENT,

deduction of consideration for compulsory, allowed in case of
agricultural property, 41.

ESTATE,

by itself, deyolution of property under 1,000^., as, 71.

property devolves as, when, 18.
by the courtesy treated as settled, 25, 86.
definition of, 2.
duty. See Estate Duty.
includes income down to death, 32.
in dower treated as settled, 25, 86.
less than 100^., estate duty not payable on, 73, 74.
small, provisions as to duty on, 71.
tail in remainder, qucere, whether estate duty payable on failure

of, 26.
under 1,000?. not charged with legacy or succession duty, when,

71.
Settlement estate duty, when,
21, 71.
value of, how ascertained, 34 et seq.

ESTATE DUTY,

analogue of probate duty, 2.

of succession duty, 2.
annuities, not payable on cesser of, when, 7, 16.
apportionment of, when, 67.

disputes as to, 68.
capital money under the Settled Land Acts may be applied in

payment of, 59.
collection and recovery of, 28, 45.
commutation on interests in expectancy, 65.
composition of, QQ.
definition of, 2.

duty on Colonial property when deducted from, 39, 78.
exemptions from. See Exemptions.
fixed, on small estates, 71.
grant of, 2.
how collected if not paid by the executor, 31, 32.

F. I

114 INDEX,

ESTATE BJJTY— continued.
in arrear, 52, 53.

includes Settlement estate duty, when, 29.
interest forms part of, when, 32.
is a first charge on what property, 56.
is not a charge on Colonial property, 56, 78.

property passing to the executor as such, 55, 56.
leases for lives, not payable on determination of, when, 16.
levied on value of aggregated estate, 18.
limited owner paying, has what charge for, 59.
none on annuities in gross, 6.

estates of less than 100/. . .73, 74.
pin money, when, 81.
settled property, when, 23, 26.
on property not passing to executor, recovery of, 58.
on real property, may be paid by instalments, 33.
on settled property, 2, 3, 20.
once leviable on same death, 45.

payable if general power of appointment reserved to settlor, 9, 10.
life interest reserved to settlor, 9.
power of revocation reserved to settlor, 9.
in respect of foreign and Colonial property, when, 14.

joint purchases and investments, when,

8, 11.
policies of insurance, 11.
survivorship annuities, 13.
trust property, when, 15, 85.
out of general estate, when, 30.

specific property passing, when, 56.
persons accountable for, 30, 48, 49.

paying rateable part of, bound by what accounts, 68.
postponement of payment of, when allowed, 30, 52.
power of Treasury to remit, when, 3, 69.
proceedings to recover, cannot be taken in colony, 78.
raisable, how, 30, 58.
rate of, how first calculated, 29, 52.

receiver may be appointed in proceedings for recovery of, 53.
recoverable by executor, how, 30.
recovery of, 45.

remission of, after twenty years, 53.
repayment of, 57.
sale to raise, 58.

settlement. See Settlement Estate Duty.
stamp duty, to be a, 28, 54.
substitute for probate duty, 46.
to be paid on sale of real estate, when, 33.
when due, 32.

EXECUTOR,

accounts to be furnished by, with Inland Revenue affidavit,

29, 48.
course to be adopted if value of property not known, 30, 31.
definition of, 29, 82.
de son tort accountable, 51.
limitation of liability of, 29, 48.
may pay duty on other property, when, 28.
may raise estate duty, how, 30, 58.
may recover estate duty, how, 30, 58.
must pay duty on all personal property of which deceased was

competent to dispose, 28.

INDEX. 115

'EXECTJTO'R— continued.

no charge for duty on property passing to him as such, 55.

power of, to sell or mortgage, 59.

probate will be granted to, when, 29, 30.

recovery of duty by, in case of property not passing to him as

such, 58.
safe to deal with, 49, 55.

EXEMPTIONS.

from aggregation, 18, 71.

estate duty, 2, 3, 45, 69, 79, 81.
legacy duty, 71.
Settlement estate duty, 71.
succession duty, 71.

EXPECTANCY,

interest in. See Inteeest m Expectancy.

FELLOW

of a college, estate duty not payable on stipend of, 8.

FIDUCIARY,

power renders deceased competent to dispose, when, 85.

FINES,

deducted in case of agricultural property, 41.

FIVE HUNDRED POUNDS,

fixed duty on estates, gross value of which is under, 71.

FIXED DUTY,

on small estates, 71.

FOREIGN

country, deduction for duty payable in, 39.
debts, how and when deducted, 37, 38.

FOREIGN CREDITORS,

debts due to, may be deducted, when, 35.

FOREIGN PROPERTY,

allowance to be made for expenses of administering, 39.

of realising, 39.
deductions from, 35.

executor accountable for duty, on what, 29, 48.
estate duty a charge on, when, 56.
incumbrances on may be deducted, when, 35.
liable to estate duty, when, 14.

lineals formerly paid legacy and succession duty on foreign per-
sonalty, 15.

FORMS,

provisions as to, 54.

FRAUD,

certificate of discharge, efPectual in case of, when not, 63, 64.
effectual, when, 64.

116 INDEX.

FREEBENCH, 86.

FRIENDLY SOCIETIES,

estate duty not payable on sums of less than 100?. in, 45.

FUNERAL EXPENSES,
what are reasonable, 35.

GENERAL POWER,

fiduciary, renders deceased competent to dispose, when, 5, 85.

when not, 5, 85.
money raised under, 86.

GENERAL POWER OF APPOINTMENT. See General Poweb.
if unexercised, probate duty not payable, 6.
person having-, is competent to dispose, 6, 85.

even if unexercised, 6, 85.
release of, 13.

reserved to settlor, renders estate duty payable, 9.
voluntary release of, ineffectual within year of settlor's death, 10.

GIFT,

how effected, 10.

if made within twelve months of death, estate duty payable, 8, 10.

if donor retains any interest, estate duty payable, whenever gift

was made, 8.
may be by declaration of trust, 8, 10.
transfer, 8, 10.

GUARDIAN,

when accountable for duty, 49.

HIGH COURT,

appeals to, 59.

application to, as to apportionment of duty, 68.

IN MONEY OR MONEY'S WORTH,

debts and incumbrances to be allowed must be for full considera-
tion, 36.
what is, 17, 36.

INCOME,

down to death included in estate, 32.

INCOME TAX ACTS,

deductions allowed under Schedule A, 41.
INCUMBRANCES,

created by way of suretyship, qiccere as to, 37.

in consideration of marriage cannot be deducted, 35.

may bear rateable part of
duty, 25, 35.
definition of, 35, 83.
may be deducted, when, 35.
no allowance made for contingent, 36.
on foreign property may be deducted, when, 35.
prior to estate duty, what are, 56.
rateable amount of duty thrown on to, 35, 68.
to be deducted, must have been for deceased's own use and benefit,

36.
full consideration in money or
money's worth, 36.
must take effect out of deceased's interest, 36.

INDEX. 117

INDIAN

Government annuities, estate duty not payable on, when, 3, 69.

INLAND REVENUE,

accounts to be annexed to, 29, 48.
affidavit, 30, 48, 84.

what duty executor must pay on delivery of, 29.

INSPECTION,

Commissioners may order for purposes af valuation, 44.

INSTALMENTS

of estate duty on real property, 33.

of succession duty on real property when successor is competent
to dispose, 75.

INSURANCE,

deducted in case of agricultural property, 41.
policies of. See Policies op Insueanoe.

INTEREST,

Court may allow, when, 61.

deceased's, debts and incumbrances taking effect out of, 36, 37.
quare whether mortgages under joint power of appointment
take effect out of, 36.
forms part of estate duty, when, 32.
in expectancy. See Inteeest est Expectancy.
life. See Life Inteeest.

not charged in case of small estates, when, 33, 72.
on arrears of duty, 53.

on repayments of duty, when given, 53, 61.
remission of, after 20 years, 53.

INTEREST IN EXPECTANCY,

commutation of estate duty on, 65.

definition of, 83.

does not include reversions on leases for years, 42, 83.

may be vested or contingent, 42, 83.

payment of duty may be postponed on, 42.

qtccere whether aggregated if duty commuted, 18, 66.

if sold or mortgaged before 1st August,
1894.. 81.
rent-charge created by settlor is an, 25.
sold or mortgaged before Ist of August, 1894, provisions as to, 80.
two duties payable, when, 43.

JOINT INVESTMENT,

estate duty payable on, when, 8.

when not, 11.
example of, 11.

JOINTURE,

cleared of estate duty, when, 24.
contributes to duty, when and how, 24, 68.

rent- charge charged by settlor in lifetime on settled estates, how
dealt with, 25.
quvere whether an interest in expectancy, 25.
rent- charge, estate duty not payable in cases of, when, 24,

118 INDEX.

JUDGE,

estate duty not payable on emoluments of, 8.

LEASES,

for lives, 7.

deduction allowed on determination of, if granted for partial

consideration, 16.
estate duty not payable on determination of, if granted for
value, 16.
for years, interest in expectancy does not include reversions on,
43, 84.

LEGIAOY,

in specie, valuation of, 44.

LEGACY DUTY,

exemption of property under 1,000?. from, -when, 71.
one per cent, formerly payable by lineals on foreign personalty,
15.
not leviable on settled property if estate duty once

paid, 22, 23.
payable on property out of the United Kingdom,

when, 14, 15.
when not payable, 5.
when still payable, 5.

LETTEES OE ADMINISTRATION. See Peobate and Repee-

SENTATION.

LIABILITY,

limitation of, as to extent, in the case of executors, 48.

time, in the case of purchasers and mortgagees,
46.
trustees and executors, 48.
LIFE ESTATES. See Life Inteeest.

LIFE INTEREST,

effect of release of, 10, 12, 13.

pur autre vie, 6.

reserved to settlor renders estate duty payable, 9.

value of property passing on cesser of, 43, 44.

LIMITED OWNER,

paying estate duty has what charge, 59.

LOCAL TAXATION GRANT, 77.

MANAGEMENT,

deduction in case of agricultural property for expenses of, 42.

MANSION,

included in agricultural property, when, 83.

MANUSCRIPTS,

estate duty remitted on, when, 69.

MARINE,

estate duty not payable on arrears of pay or pension of, when, 3,
45, 46.

INDEX. 119

MARLBOROUGH,

lands and chattels settled on Dukedom of, how dealt with, 28.

MARRIAGE.

debts and incumbrances created in consideration of, not deducted,

35.
debts and incumbrances created in consideration of, may bear

rateable part of duty, 25, 36.
not a valuable consideration, 17.

MARRIAGE SETTLEMENT,

by a third person is a gift, 10.
See Settlement.

MASTER,

of a college, estate duty not payable on emoluments of, 8.

MONEY OR MONEY'S WORTH. See In Money oe Money's

WOETH.

MORTGAGE,

created under joint power of appointment, takes effect out of

whose interest, 37.
to raise estate duty, 58.

MORTGAGE DEBTS,

subject of donatio mortis causa, 9.

MORTGAGEE,

exempted from liability for duty, when, 46.
may be called on to give information to Commissioners, 51.
of interest in expectancy on or before 1st August, 1894, what
duty payable by, 80.

MUNICIPAL CORPORATION,

estate duty may be remitted on gifts to, when, 3, 69.

NATIONAL SCIENTIFIC PURPOSES,

pictures, &c. given or bequeathed for, exempted from estate

duty, when, 3, 69.
what are, 70.

NELSON,

lands and chattels settled on Earldom of, how dealt with, 28.

NOTICE,

purchaser for value without, 56.
what is, 56.

OITICE,

estate duty not payable in respect of stipend attached to, 3, 8.

OFFICER,

estate duty not payable on effects of, when, 46,

120 INDEX.

OFFICER OF INLAND REVENUE,

duties of, in case of small estates, 73.

ONE HUNDRED POUNDS,

estate duty not payable on estates less than, 73.

sums less than, payable to deceased's
representatives without representa-
tion, 3, 45.

ONE PER CENT. See Legacy Duty and Succession Duty.

ONE THOUSAND POUNDS,

estates under, not charged with Settlement estate, or Legacy or

Succession duty, when, 71.
property under, an estate by itself, when, 71.

OUTGOINGS,

what are necessary, under the Succession Duty Act, 1853. .41.

PAROL TRUST,

settlement may be effected by, 83.

PARSON,

estate duty not payable on emoluments of, 8.

PASSING UNDER

a settlement, what is property, 12, 13.

PAY,

estate duty not payable on arrears of, when, 46.

PENALTY,

amount of, 51.

for neglect to obtain representation, 51.

furnish further affidavit, 51.
how recovered, 52.
only for wilful defaults, 51, 54.
remission of, 51.

PENSION,

estate duty not payable on arrears of, when, 46.
charitable, 6.

PICTURES AND PRINTS,

given for national scientific purposes, exempted from estate duty,
when, 3, 69.
to a county council, 3, 69.
to municipal corporations, 3, 69.
to universities, 3, 69.
. valuation of, 62.

PIN MONEY,

estate duty not payable on, when, 81.

PLATE,

valuation of, 62.

POLICIES OF INSURANCE,

nomination, 11.

subject of donatio ynortis causd, 9.
survivorship, 11.

under Married Women's Property Act, 1870, liable to estate
duty, 11.

INDEX. 121

PORTIONS,

cleared of estate duty, when, 24.

contribute to estate duty, when and how, 24, 67.

created by deceased, 25, 34.

POSSESSION,

succession duty not payable unless successor comes into, 76.

POSTPONEMENT,

of estate duty to death of survivor of husband and wife, 82.
of payment of estate duty, when allowed, 30, 52.
probate wiU be granted, when, 30.

POWER OF APPOINTMENT. See Geneeal Power of Appoint-
ment.
effect of joint, 24, 86.
mortgage created imder, takes effect out of whose interest, 37.

POWER OF REVOCATION,

release of, 13.

reserved to settlor, renders estate duty payable, 9.
voluntary release of, ineffectual within year of settlor's death,
10, 13.

PRACTICE,

as to grant of probate, 29.

PREBEND,

estate duty not payable on emoluments of, 8.

PRINCIPAL VALUE. See Value.
PRINTS. See Pictures and Peints.

PROBATE,

certificate on, under 44 & 45 Vict. c. 12, s. 30. .55.
penalty for neglect to obtain, 51.
valuation for purposes of, 40.
will be granted, when, 29, 30.

PROBATE DUTY,

estate duty, analogue of, 2.

substitution for, 46.
if paid or payable in respect of settled personalty, estate duty not

payable, 2, 5, 79.
not payable if power of appointment not exercised, 6.
no valuation by Commissioners, for, 44.

PROMISSORY NOTES,

subject of donatio mortis causd, 9.

PROPERTY,

definition of, 82.

passing on cesser of interest, value of, 43, 44,

122 INDEX.

TROTrntTY— continued.

passing on death, after an interval, 7, 84.

by way of substitutive limitation, 7, 84.

can only be aggregated once, 36, 45.

certainly, 7, 84.

chargeable once with estate duty, 45.

contingently, 7, 84.

definition of, 84.

immediately, 7, 84.

originally, 7, 84.

trust property is deemed to be, when, 15.

when not, 15.
what property is chargeable, when, 4.
PURCHASE,

in joint names, estate duty payable on, 8, 11.

PURCHASERS,

exempted from liability for duty, when, 46.
for value, without notice, not accountable for estate duty, 50, 55.
no charge for estate duty on property

in hands of, 55, 56.
protected in case of fraud, &c., 64.
inquiries to be made by, 34.

of interest in expectancy before 1st August, 1894, what duty
payable by, 80.

RATE, 17, 74.

of estate duty, appeal as to, 68.

how calculated in first instance, 29, 52.

if payment postponed till death of survivor of
husband and wife, 68.
of Settlement estate duty, 74.

RATES,

what may be deducted from value of agricultural property, 41.

REAL ESTATE,

estate duty on, may be paid by instalments, 33.

instalments of duty on, to be paid on sale, 33.

limitation of liability, when estate duty payable by instalments

on, 47.
situate abroad, not as a rule liable to estate duty, 15.

when liable to estate duty, 15.
what inquiries should be made by purchaser of, 34.

REALIZATION

of foreign property, allowance for cost of, 39.

RECEIVER,

may be appointed in proceedings for recovery of estate duty, 54.

RECOVERY,

of estate duty, 28, 45.

by executor in case of property not passing to him
as such, 58.

proceedings for, not to be taken in a colony, 78.

receiver may be appointed in proceedings for, 54.

when apportioned, 68.
of penalty, how effected, 52.

INDEX. 123

REGISTRAR,

of County Court, duties of, under sect. 16. .72.

REIMBURSEMENT,

debts cannot be deducted if a right to, when, 37.

RELEASE,

of general power of appointment, effect of, 13.

ineffectual within year of re-
leasor's death if voluntary, 10.
secies, if for value, 13.
of life interest, effect of, 12, 13.

ineffectual within year of releasor's death if

voluntary, 10, 12.
secus, if for value, 13.
of power of revocation, effect of, 13.

ineffectual within year of releasor's death

if voluntary, 10, 13.
secus if for value, 13.

REMAINDER. See Inteeest in Expectancy.

estate duty not payable under a settlement on failure of interest

in, 26.
qucere whether estate duty payable on failure of estate tail in, 26.

REMISSION

of estate duty or interest after twenty years, 53.

RENT-CHARGE. See Annuity.

created by deceased, qucere wheiher an interest in expectancy, 25.

no deduction allowed for, when, 25, 34.

pur autre vie, 7.

value of property passing on cesser of, 43, 44.

REPAIRS,

deduction in case of agricultural property, 41.

REPAYMENT

of estate duty, 53.

interest allowed, when, 53, 61.
to person producing certificate, 57.

REPRESENTATION,

definition of, 46, 82.
penalty for neglect to obtain, 51.

sums payable to deceased's representatives without, free from
estate duty, 3, 45.

REVERSIONS. See Inteeest in Expectancy.

ROYAL GRANT,

lands and chattels settled by, how dealt with, 27.

SALE,

of real property, estate duty payable on, 33.

to raise estate duty, 58.

SAYINGS BANK,

estate duty not payable on sums of less than 100^. in, 46.

124 INDEX.

SCOTLAND,

application of the Act to, 87 seq.

SEAMEN,

estate duty not payable on arrears of payor pension of, when, 46.
effects of, when dying in Her Ma-
jesty's service, 45.
SETTLED LAND ACTS,

capital money under, applicable for estate duty, 59.

SETTLED PROPERTY,

capital money under the Settled Land Acts applicable for payment

of estate duty on, 59.
definition of, 83.

effect of first life interest given by husband to wife in, 3, 81.
estate duty levied on, 6.
estate duty levied on, how, 20.

not levied on, when, 2, 3, 23.
exempted from estate duty, how long, 22.

though beneficiary takes absolutely,
23.
one per cent, legacy and succession duty, when,
22, 23.
Settlement estate duty not payable on, if settled before 1st

August, 1894.. 81.
succest^ion duty (additional) payable in respect of, when, 5, 23.
temporary estate duty, payable in respect of, when, 5, 23".
under dispositions made before 1st August, 1894. .5, 79, 81.

SETTLEMENT,

ad valorem stamp on, may be deducted from the Settlement estate
duty, 27.

by Act of Parliament, how dealt with, 27.

by parol trust, 83,

by Royal Grant, how dealt with, 27.

composite, what is continuance of, 23.

continuance of, what is, 22, 23.

definition of, 83.

effect of release of life interest, &c. under, 12, 13.
taking property out of, 12.

effected by exercise of joint power of appointment, 24.

estate duty payable if power of revocation is reserved to settlor, 9.

foreign personalty comprised in an English, liable to estate duty,
15.

jointures and portions under a, 24, 25, 67.

made before 1st August, 1894, Settlement estate duty not payable
on, 81.

marriage and voluntary, on same footing, 10, 12.

on failure of interest in remainder under a, estate duty not pay-
able, when, 26.

re -settlement, what is the continuance of, 23.

SETTLEMENT ESTATE DUTY,

ad valorem stamp may be deducted from, 27.
included in estate duty, when, 29.
levied on principal value, 22.

once during continuance of settlement, 20, 21.

when, 20.

INDEX. 125

SET ELEMENT ESTATE T>VTY— continued.
not levied on estates under 1,000?., when, 21.

property settled before 1st August, 189i. .20, 21, 81.
wlien only life interest that of husband or wife of

deceased, 20, 21.
when property passes to a person competent to dis-
pose, 20, 21.

SETTLOR,

general power of appointment reserved to, renders estate duty

payable, 9.
release of, 10, 13.
life interest of, release of, 10, 12.
must be excluded from all benefit or control over settlement, 10,

15, 86.
power of revocation reserved to, renders estate duty payable, 10.

release of, 10, 13.
property held by, as trustee, when chargeable with estate duty,

15, 86.
not chargeable with estate
duty, 15, 86.
should not be trustee of a settlement made by himself, 15, 86.

SHREWSBURY,

lauds and chattels settled on Earldom of, how dealt with, 28.

SIX YEARS,

the limit of liability for estate duty, when, 47.

SMALL ESTATE. See Estate.

SOLDIERS,

effects of, exempted from estate duty, when, 3, 45, 46.

SOLICITOR,

may be called on to give information to the Commissioners, 51.

STAMP,

ad valorem, may be deducted from the Settlement estate duty, 27.
estate duty may be collected by means of, 28, 54.

STATEMENT,

of property, Commissioners may require, when, 50.
provisions as to, 54.
verification of, 54.

SUCCESSION DUTY,

additional, under the Act of 1888, when payable on settled pro-
perty, 23.
when still payable, 6.
charged on principal value when successor competent to dispose,

75.
estate duty, analogue of, 2.

exemption of property under 1,000/. from, when, 71.
no valuation by the Commissioners for, 44.
not payable unless successor comes into possession, 76.

126 INDEX.

SUCCESSION DVTY— continued.

one per cent, formerly payable by lineals, when, 15.
when still payable, 5.

not payable, 5, 22, 23.
payable on foreign property, when, 14, 15.

impaid instalments of, deducted in the case of agricultural pro-
perty, 41.

SUCCESSOR,

competent to dispose, succession duty in case of, 75.
succession duty not payable by, unless he comes into posses-
sion, 76.

SURETY,

no deduction for debts for which deceased was, when, 37.

TAIL,

estate. See Estate.

TAKE EFFECT OUT OF INTEREST. See Inteeest, 86.

TAXES,

deduction of, in case of agricultural property, 41.

TEMPORARY ESTATE DUTY,

payable on settled property, when, 23.
when payable, 6.
when not, 6.

TENANT FOR LIFE,

accountable for estate duty, when, 49.
not competent to dispose, 6, 85.

TENANT IN TAIL,

in possession, is competent to dispose, 5, 85.

in remainder, competent to dispose, when, 5, 6, 26.

qucere whether estate duty payable on death of, 26
under Act of Parliament, provisions as to, 27.
under Royal G-rant, 27.

TERMINABLE CHARGE,

an incumbrance, 84.
to raise estate duty, 59.

THREE HUNDRED POUNDS,

fixed duty on estates, gross value of which is under, 71.

TIMBER,

queer e how valued, 41.

TIMBER ESTATES,

how dealt with, 42.

TITHE AND TITHE RENT- CHARGE,

deducted in case of agricultural property, 41.

TRANSACTIONS FOR VALUE,

estate duty not payable on, when, 16.

INDEX. 127

TRANSFER,

gift may be made by, 8, 10.

of property into joint names, estate duty payable on, when, 8.

when not, 11,
TREASURY,

may remit estate duty, when, 3, 69.

TRUSTEE,

accountable for estate duty, when, 30, 49.
limitation of liability for duty in case of, 48.
property held by, liable to duty, when, 15, 85.

when not, 15, 85.

TWELVE YEARS,

the limit of liability for duty, when, 47.

UNITED KINGDOM,

what Colonial property treated as situate in the, 78.

UNIVERSITY,

gifts to, when exempted from estate duty, 69.

VALUATION,

appeal as to, 60.

by Commissioners, 44.

costs of, 40, 44.
for purposes of probate, 40.
inspection by Commissioners for purpose of, 44.
persons paying rateable part of estate duty bound by, when, 68.
separate, for different classes of property, 52.

VALUE,

annuities granted for, exempted from estate duty, 16, 17.
deduction allowed in cases of leases and annuities granted for

partial, 16, 17.
gross, what is, 73.

leases for lives granted for full, exempted from estate duty, 16.
of agricultural property for succession duty, 75.
of lands and chattels settled by Act of Parliament, how ascer-
tained, 27.
of lands and chattels settled by Royal Grant, 27.
of property, course to be adopted if executor does not know, 30,
31.
passing on cesser of interest, 43.
principal, general rule for ascertaining, 39, 40.
of agricultural property, 40.
of annuities, 7, 14. .
piirchaser for, without notice, exempted from liability, 55, 64.

no charge for duty on property in
hands of, 55, 64.
transactions for full, exempted from estate duty, when, 16.

partial, exempted from estate duty, when, 16.

VALUERS,

County Council to appoint, 62.

Court may refer questions as to value to arbitration of, 62.

128 INDEX.

VOLUNTARILY,

now omitted from 44 & 45 Vict. c. 12, s. 38, and 52 & 53 Vict
c. 7, 8. 11.. 8, 10.

VOLUNTARY.

now omitted from 44 & 45 Vict. c. 12, s. 38,' and 52 & 53 Vict,
c. 7, s. 11.. 8.
effect of omission, 10.

VOLUNTEER,

accountable for estate duty, 50.

•reference to, omitted from 44 & 45 Vict. c. 12, 8. 38, and 52 &
53 Vict. c. 7, s. 11.. 8, 10.

WELLINGTON,

lands and chattels settled on Dakedom of, how dealt with, 28.

WILL,

definition of, 82.

WOODLAND,

qucere, how valued, 41.

WRIT OF SUMMONS,

for account and payment of estate duty, 45, 60.

PEINTED BY C. F. EOWOETH, aHEAT NEW STREET, FETTEB LANE, E.G.

'-<J

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Full text of "The Finance Act, 1894 (57 [and] 58 Vict C. 30) so far as it relates to the new estate duty and other death duties in England; with an introduction and notes"

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